TORONTO, Aug. 10, 2023 /CNW/ — CanDeal Benchmark Solutions, a leading provider of benchmark administration and related services, today announced the production launch date of September 5, 2023, for the distribution of the new Term CORRA (Canadian Overnight Repo Rate Average) 1- and 3-month Reference Rates.
CanDeal/TMX Term CORRA (“Term CORRA”) has been designed to be a robust benchmark that adheres to IOSCO’s Principles for Financial Benchmarks. Term CORRA will be calculated and published by CanDeal Benchmark Solutions using price and trade data from CORRA futures contracts traded on the Montréal Exchange. CanDeal Benchmark Solutions will publish the rates on its website on a T+1 basis for free and they will be available in real-time on the day of calculation at 1 PM ET through TMX Datalinx or licensed data distributors. The use of the rate will be restricted to the Term CORRA use cases developed by the Canadian Alternative Reference Rate working group (CARR). Market participants that develop or have products that align with CARR’s use cases referencing Term CORRA will need to enter into a commercial licensing agreement with TMX Datalinx.
CanDeal Benchmark Solutions has worked closely with CARR to adapt and implement CARR’s recommended calculation methodology for Term CORRA Reference Rates. Term CORRA’s input pricing is based on actual futures contract transactions, as well as bids and offers on CORRA futures contracts, thus making it a reliable interest rate measure.
“The launch of the Term CORRA reference rates marks an exciting milestone in bringing a new benchmark to the Canadian markets. Through our collaboration with TMX Datalinx to distribute these new rates, the market can look forward to a reliable interest rate measure,” said Andre Craig, President, CanDeal Data & Analytics. Commenting on the launch, Louise Brinkmann, Head of CanDeal Benchmark Solutions said, “These forward-looking term rates are destined to replace CDOR with a risk-free, robust standard for transacting across the Canadian loan and derivatives markets.”
“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, TMX Datalinx. “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.”
For more background on how Term CORRA has been designed to be a robust benchmark, based on market observations and adherence to IOSCO’s Principles for Financial Benchmarks, visit here.
To learn more about CanDeal Benchmark Solutions and Term CORRA, please visit www.candeal.com/en/benchmarks.
About CanDeal Group
CanDeal Group is a leading provider of an electronic marketplace and data services for Canadian dollar debt securities and derivatives. CanDeal Data & Analytics (“CanDeal DNA”) delivers the most comprehensive and accurate dealer-sourced OTC content for pricing, analytics and reference data to industry market participants, vendor channels and solution providers. CanDeal Benchmark Solutions is an independent business unit.
CanDeal’s Markets division, which accounts for more than 90% of electronic debt trading in Canada, provides access to a deep pool of liquidity for Canadian government, agency, provincial and corporate bonds, as well as money market instruments and interest rate swaps. CanDeal Solutions delivers mutualized services, including a centralized KYC utility for the Canadian market.
CanDeal’s stakeholders include BMO Nesbitt Burns Inc., CIBC World Markets, National Bank Financial Inc., RBC Capital Markets, Scotia Capital, TD Securities, and TMX Group. Visit https://candeal.com.
CanDeal is a registered trademark of CanDeal Markets Inc. and TMX is a registered trademark of TSX Inc.
SOURCE CanDeal