TMX Group’s information services division, TMX Datalinx, announced the production date of September 5, 2023, for the distribution of new Term CORRA (Canadian Overnight Repo Rate Average) reference rates.
The launch of CanDeal/TMX Term CORRA (Term CORRA) supports Canada’s financial industry transition from the Canadian Dollar Offered Rate (CDOR), the current key interest rate benchmark, to a new risk free, transaction-based benchmark, scheduled for June 2024.
The Term CORRA benchmark is a forward looking term rate to replace CDOR in loans and associated derivative hedges, and will be derived from transactions and executable bids and offers from CORRA interest rate futures traded on the Montréal Exchange.
“TMX Datalinx’s role in the upcoming industry transition to Term CORRA represents an important step forward for our benchmark and indices strategy, while enriching the core content we provide to clients,” said Michelle Tran, president of TMX Datalinx, in a stateement. “We are excited to work with the CanDeal team in the distribution of the Term CORRA benchmark, and to explore further opportunities for new products based on Term CORRA.”
“The launch of the Term CORRA reference rates marks an exciting milestone in bringing a new benchmark to the industry leveraging our respective capabilities. We are pleased to partner with TMX to provide exchange futures and distribution,” said Andre Craig, president of CanDeal Data & Analytics, in a statement.
Louise Brinkmann, head of CanDeal Benchmark Solutions, said in a statement: “These transparent and regulated term rates will provide a robust standard for interest rate benchmarks in Canada.”
Term CORRA is calculated and administered by CanDeal Benchmark Solutions and exclusively licensed and distributed by TMX Datalinx. The Ontario Securities Commission (OSC) and the Autorité des marchés financiers (AMF) are expected to designate CanDeal Benchmark Solutions as the benchmark administrator for Term CORRA and Term CORRA itself as an Interest Rate Benchmark.