On June 6, 2024, the Ontario Securities Commission, Autorité des marchés financiers, British Columbia Securities Commission and Alberta Securities Commission published CSA Multilateral Staff Notice 25-312 Reminder of Cessation of CDOR on June 28, 2024(the “Staff Notice”). The Staff Notice reminds market participants that the Canadian Dollar Offered Rate (“CDOR”) will cease to be published after June 28, 2024 (the “CDOR Cessation Date”).
The Canadian Securities Administrators (“CSA”) issued CSA Staff Notice 25-309 Matters Relating to Cessation of CDOR and Expected Cessation of Bankers' Acceptances in February 2023 to notify market participants of certain developments and transition issues regarding the cessation of CDOR and the expected cessation of the issuance of Bankers’ Acceptances. The CSA encouraged market participants that issue or hold securities or that are parties to derivatives or loan agreements that use CDOR as a reference rate, and which extend or might extend past the CDOR Cessation Date, to make transition arrangements that might include:
- the adoption of a replacement rate;
- changes to information technology systems;
- the review of existing fallback language; and
- in the case of issuers of securities, disclosure of any replacement rate or other key transition arrangements to investors.
In April 2024, the Bank of Canada and the Canadian Alternative Reference Rate working group also published a notice that provides guidance on certain transition arrangements.
As the CDOR Cessation Date is quickly approaching, market participants should adopt appropriate transition measures immediately if they have not already done so.
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