Changes To LIBOR: Discontinuation Of Canadian Dollar LIBOR

The London Inter-bank lending rate (LIBOR) underwent a number of changes last year that have impacted certain existing financial transactions and will continue to shape future transactions in 2014. 

LIBOR is the primary global benchmark, or reference rate, for short term interest rates in major currencies. It is intended to reflect the average rate at which banks can obtain funding in the London inter-bank market for a particular currency and particular time period or "tenor". The British Bankers Association (BBA) has, since 1986, operated and administered a screen LIBOR rate (BBA LIBOR) calculated from a panel of banks' submission of the rates at which they can borrow funds.

Over the past few years, the operation of BBA LIBOR has increasingly been a matter of concern among regulators, participants and LIBOR users. The rate submissions that form the basis of BBA LIBOR are estimates of borrowing costs and not actual transactions. As a result, concerns have been