2022: A Big Year For Benchmark Interbank Offered Rate Reform

Over the past few years, the Canadian financial market has watched from the sidelines as other jurisdictions retired their benchmark interbank offered rates and adopted risk-free rates in their place. In particular, the Canadian market closely followed the transition from USD London Interbank Offered Rate (LIBOR) to Secured Overnight Financing Rate (SOFR). While the Canadian financial market felt some of the impacts of the transition from LIBOR to SOFR, it also awaited a greater market shift to come.

In 2022, Canada's turn finally arrived! In May, Refinitiv Benchmark Services (UK) Limited (RBSL) announced that it would cease publishing the Canadian benchmark rate, the Canadian Dollar Offered Rate (CDOR). Loan fallback language was published and the Canadian financial market has taken large steps to transition its financial instruments from CDOR to the Canadian Overnight Repo Rate Average (CORRA).