What are IBORs?

Interbank Offered Rates (“IBOR”s) are the average rates at which banks can borrow in the interbank market and range in maturities from overnight to twelve months. The rates are calculated using submissions from a number of panel banks. IBORs were widely used as reference rates by market participants across nearly all asset classes, including derivatives, bonds, lending products, and other financial instruments.

CDOR Cessation Overview

In December 2021, the Canadian Alternative Reference Rate working group (“CARR”) determined that there are certain aspects of CDOR’s architecture that pose risks to its future robustness. As a result, the publication of all tenors of CDOR will permanently cease after June 28, 2024. This decision has been authorized by the Ontario Securities Commission (“OSC”) and Autorité des marchés financiers (“AMF”).

Key Characteristics of CDOR and CORRA

There are inherent structural differences between IBORs and RFRs. Adjustments are needed to the RFRs to ensure that contracts which reference CDOR continue to meet the parties’ original objectives as much as possible once a fallback takes effect. While the economics of RFR transactions will be similar to those under the existing CDOR product, it is impossible to say on any particular day that they will be identical.


What does it measure?

Credit-based measure that incorporates both term and bank credit risk premium.

Measures the rate that Canadian banks are willing to lend to clients with existing
credit agreements via banker’s acceptances

Risk-free measure that reflects the overnight risk-free rate, closely tracks the Bank of Canada’s Target Rate.

Measures the cost of overnight lending via general collateral repo transactions secured by Government of Canada debt

Pricing Calculation Methodology

Survey-based rate (submitted by panel banks)

Submitted rates lack transparency

Forward-looking term rate (payment is known in advance) published for 1-, 2- and 3-month tenors

Transparent, transaction-based (i.e., reflects actual market transactions)

Overnight Rate

Overnight rate compounded in arrears to create tenor



Bank of Canada

Publication Schedule

Publication delay for free usage

No publication delay for free usage


Impact of CDOR Transition

Industry Recommendations

CDOR Transition Timeline

On May 16, 2022, Refinitiv announced that the calculation and publication of CDOR will permanently cease after June 28, 2024. In its December 2021 White Paper, CARR outlined a two-stage transition plan where derivatives (bilateral, cleared and exchange-traded) and securities are expected to transition before June 30, 2023, and loans (including loan-linked derivatives) are expected to transition at cessation. The key dates related to this are:

  • June 30, 2023 – No new CDOR derivatives & securities trades (with limited exceptions)
  • September 5, 2023 – Launch of Term CORRA
  • November 1, 2023 – No new CDOR/BA lending products
  • April/May 2024 – Clearing houses conversion of CDOR swaps
  • Jun 28, 2024 – CDOR publication ceases

CARR has published a transition timeline including milestones, which can be found here.

How CIBC supports the CDOR transition

CIBC is actively engaging with industry bodies and market participants to support a smooth transition away from CDOR. Internally, CIBC has put into place a comprehensive CDOR Transition Program that covers all aspects of the transition, including client communication, contract digitization & remediation, operational readiness, product transition strategy, risk management and financial controls.

CIBC recommends that you review your CDOR exposures, as well as contracts referencing CDOR, and work with your independent financial and legal advisors to ensure you are ready for the transition event. You should also ensure that your systems, models and processes are updated to handle the alternative RFRs. Finally, as there is still some uncertainty around the transition, as highlighted above, we recommend that you continue to closely monitor market developments. CIBC will make every effort to inform you of any significant market developments.

If you have any questions, please contact us at: [email protected]

Useful External Sources

Canadian Alternative Reference Rate Working Group
The Canadian Alternative Reference Rate Working Group (CARR) was created to ensure Canada’s interest rate benchmark regime is robust, relevant and effective in the years ahead.

 International Swaps and Derivatives Association (ISDA) 
Since 1985, the International Swaps and Derivatives Association has worked to make the global derivatives markets safer and more efficient. ISDA have published work on fallbacks as well as analysis and research on benchmark reform in general.