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With Canada’s primary interest rate benchmark being discontinued in a few years, the consultation on alternatives is being extended by a couple of weeks.

The Canadian dollar offered rate (CDOR) is being replaced in derivatives and cash securities transactions by June 2023. The financial industry will have an additional year to transition to alternative risk-free rates, including the Canadian Overnight Repo Rate Average (CORRA), for loan vehicles.

Last month, the industry working group overseeing financial benchmark reform in Canada, known as the Canadian Alternative Reference Rate (CARR) working group, launched a consultation on a potential forward-looking term benchmark to replace CDOR in certain sorts of loan arrangements.

That consultation — which was launched alongside plans to discontinue CDOR by June 28, 2024 — officially ended on June 13.

However, the Bank of Canada announced today that the consultation deadline has been extended to June 30, citing “a number of requests for additional time to respond.”

CARR said that the consultation “will form the basis of any decision to create” a term CORRA benchmark to replace CDOR.