OSTTRA has processed over 300k cleared Canadian Dollar Offered Rate (CDOR) trades through CCP Sync on its MarkitWire platform for more than 60 customers over the past month, as the industry moves towards finalizing the transition to Canadian Overnight Repo Rate Average (CORRA) on 28 June.
The Canadian Dollar Offered Rate (CDOR) is the latest legacy benchmark rate, commonly referred to as the IBORs (Interbank Offer Rates), being replaced with new alternative transaction-based benchmark interest rates in the majority of regions across the globe. Transitioning these benchmarks affects a significant portion of the swaps market and OSTTRA customers. Interest rate swaps use benchmarks like LIBOR or its replacements (such as CORRA) to determine floating rate payments.
CCP Sync supports the transition events and allows OSTTRA MarkitWire to capture the results of any post clearing activity, including compression, from multiple CCPs, delivering the results to customers in a consistent format via existing connectivity.
Melissa Younger, head of Rates & Credit Trade Processing at OSTTRA, said in a statement: “Our ability to process such a high volume of CAD trades successfully highlights our commitment to facilitating a smooth transition for our customers, who value our expertise and partnership. Comprehensive support, consistent processing across multiple CCPs and innovative solutions are key to ensuring the industry continues to adjust smoothly to new benchmark rates.”
For comparison, OSTTRA triReduce compressed $684 billion in the new benchmark during the week following the LCH transition event from LIBOR to SOFR.
The market will turn its attention to the Mexican TIIE and Euroyen TIBOR in Q4. In the run up to these events, OSTTRA will provide customers with testing that mirrors live infrastructure, alongside technical support to ensure readiness for the dress rehearsals that run in advance of live events with multiple CCPs. As customers seek to reduce their exposure to legacy benchmarks, OSTTRA triReduce has already completed a record H1 in MXN at CME with $1.4 trillion compressed and more cycles scheduled.