Market Insights

Global regulators have been working with the financial sector to transition away from the use of certain interest rate benchmarks, such as the London Interbank Offered Rate (LIBOR) and Canadian Dollar Offered Rate (CDOR) towards the adoption of alternative risk-free rates (RFRs), which are based on actual overnight transactions.

Transition away from use of the Interbank Offered Rates (IBORs) and adoption of RFRs are well underway as noted below:

IBOR (Tenors) Discontinuation Rates RFR
6M, 12M
May 14, 2021 CORRA

ON, 1W, 2M, 12M

December 31, 2021 SONIA

Spot next, 1W, 2M, 12M

December 31, 2021 TONA

All tenors

December 31, 2021 €STR

All tenors

December 31, 2021 SARON

1W and 2M

December 31, 2021 SOFR


January 3, 2022 €STR

O/N, 1M, 3M, 6M, 12M

June 30, 2023 SOFR

1M, 2M, 3M

June 28, 2024 CORRA


About CDOR Transition

On May 16, 2022, the administrator of the Canadian Dollar Offered Rate (CDOR) Refinitiv Benchmark Services (UK) Limited (RBSL), announced that it will cease the calculation and publication of CDOR on June 28, 2024. This decision aligns with the recommendation made by the Canadian Alternative Reference Rate (CARR) Working Group in December 2021 and follows a broad public consultation from RBSL regarding that recommendation.

The decision to cease the publication of CDOR is made within the context of a global interest rate benchmark reform effort where the most widely used benchmarks are based on risk free rates rather than bank credit rates. This announcement will ensure that Canada’s interest rate benchmarks are robust, transparent and resilient into the future. The Office of the Superintendent of Financial Institutions (OSFI) has published an Industry Notice outlining their expectations for CDOR's transition through a two-staged transition approach:

  1. New derivative contracts (bilateral, cleared, and exchange-traded) and securities (assets and debt liabilities) to transition to alternative reference rates by June 30, 2023, with no new CDOR exposure being booked after that date, with limited exceptions for risk mitigation requirements.
  2. By June 28, 2024, OSFI expects that federally regulated financial institutions (FRFIs) will have transitioned all loan agreements referencing CDOR.

The CARR has also published a white paper on the recommended future of CDOR published on December 16, 2021

CDOR and CARR Overview


Loans and Hedging

Bankers Acceptances (BAs)

Additional Information