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ARTICLE · 26 OCTOBER 2023

CDOR Cessation: New CORRA-Based Loans Recommended Language And CDOR Cessation Milestone Published By The CARR

In our article from September 15, 2022, we discussed the announcement made by Refinitiv Benchmark Services Limited (RBSL), the benchmark administrator of the Canadian Dollar Offered Rate (CDOR)...

CanadaFinance and Banking

In our article from September 15, 2022, we discussed the announcement made by Refinitiv Benchmark Services Limited (RBSL), the benchmark administrator of the Canadian Dollar Offered Rate (CDOR), for the permanent cessation of publication of all tenors of CDOR after June 28, 2024 (the CDOR Cessation Date). We also discussed the recommendations contained in the Canadian Alternative Reference Rate Working Group's (the CARR) White Paper published on the December 16, 2021, specifically that (i) the RBSL permanently discontinue the calculation and publication of CDOR, and (ii) the adoption by Canadian loan market participants of the Canadian Overnight Repo Rate Average (CORRA) as the replacement rate for CDOR. These recommendations are intended to align Canadian lending practices with the practices adopted in other jurisdictions, consistent with recent global benchmark reform initiatives.

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