The Ontario Securities Commission (OSC) has approved an application from CanDeal Benchmark Administration Services Inc. (CBAS) regarding the Term Canadian Overnight Repo Rate Average (Term CORRA). The decision, based on the Securities Act (Ontario) and the Commodity Futures Act (Ontario), designates Term CORRA as a benchmark and CBAS as its administrator, aligning with Multilateral Instrument 25-102 and OSC Rule 25-501.
Term CORRA is set to replace the Canadian Dollar Offered Rate (CDOR), which will be discontinued on June 28, 2024. It is a forward-looking rate based on expectations from CORRA derivatives markets, initially intended for use in trade finance, loans, and related derivatives.
The OSC’s decision is influenced by the anticipated importance of Term CORRA in transitioning from CDOR and the need for a regulated benchmark. CBAS, as the designated administrator, must adhere to the relevant provisions of MI 25-102 and OSC Rule 25-501.
CBAS has also provided an undertaking to the OSC, detailing commitments such as establishing an oversight committee, restricting trading activities of related individuals, and annual compliance certifications.
The decision was made on September 15, 2023, by Grant Vingoe, the Chief Executive Officer of the OSC.