ISDA Statement on CARR and RBSL Announcements on CDOR

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ISDA has published the following statement in response to yesterday’s announcements by the Canadian Alternative Reference Rate (CARR) working group and Refinitiv Benchmark Services (UK) Limited (RBSL), the administrator of the Canadian Dollar Offered Rate (CDOR).

“On December 16, CARR published a paper analyzing the status of CDOR, which recommends RBSL cease publication of all CDOR’s remaining tenors after the end of June 2024. The paper adds, however, that the decision to cease CDOR ultimately lies with RBSL as the administrator of CDOR. RBSL separately published a statement acknowledging CARR’s announcement and stating its intention to conduct its own analysis, engage with market participants and consider what further steps might be necessary to reach a conclusion over CDOR’s future.

“Neither of these statements constitute an index cessation event under the ISDA 2020 IBOR Fallbacks Supplement or the ISDA 2020 IBOR Fallbacks Protocol. Therefore, these statements will not trigger the fallbacks under the supplement or protocol (ie, to the adjusted risk-free rate plus spread) or have any effect on the calculation of the spread. These statements will also not trigger fallbacks under the 2018 ISDA Benchmarks Supplement or its protocol.”

This statement is for information purposes only. It does not constitute legal advice and should not be considered an explanation of all relevant issues. You should consult your legal advisors and any other advisor you deem appropriate in considering the issues discussed herein.

For additional information on benchmark reform, including the operation of new derivatives fallbacks, visit ISDA’s benchmark reform and transition from LIBOR page on the ISDA website.

 

For Press Queries, Please Contact:

Nick Sawyer, ISDA London, +44 20 3808 9740, nsawyer@isda.org

Lauren Springer, ISDA New York, +1 212 901 6019, ldobbs@isda.org

Joel Clark, ISDA London, +44 20 3808 9760, jclark@isda.org

Christopher Faimali, ISDA London, +44 20 3808 9736, cfaimali@isda.org

Nikki Lu, ISDA Hong Kong, +852 2200 5901, nlu@isda.org

 

 

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