On November 26, 2020, the Canadian Securities Administrators (CSA) published a staff notice on recent developments regarding interest rate benchmarks (Notice).
According to the Notice, Refinitiv Benchmark Services (UK) Limited (RBSL), the administrator of Canadian Dollar Offered Rate (CDOR), announced on November 12, 2020 that the six-month and 12-month tenors of CDOR will cease to be published effective May 17, 2021 (the effective date). The one, two and three-month tenors of CDOR will continue to be published after the effective date.
The staff notice also outlines international developments to replace key inter-bank offered rates (IBORs) with nearly risk-free reference rates (RFRs). In particular, the United Kingdom, the United States and other countries are currently working to replace the London inter-bank offered rate (LIBOR) with alternative RFRs before the end of 2021.
See CSA Staff Notice 25-302 Matters Relating to CDOR, LIBOR and Other Interest Rate Benchmarks is available on CSA members’ websites: https://www.bcsc.bc.ca/securities-law/law-and-policy/instruments-and-policies/2-certain-capital-market-participants/current/25-302/25302-csa-staff-notice-november-26-2020
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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