Canadian Agencies Issue Guides on CDOR Cessation and Capital Adequacy
AMF, the financial regulator of Quebec, updated the guidelines on capital adequacy for financial services cooperatives and credit unions, with effect from February 16, 2023. Additionally, the Canadian Securities Administrator (CSA) issued a staff notice providing guidance on the cessation of the Canadian Dollar Offered Rate (CDOR) and the expected cessation of the issuance of Bankers’ Acceptances.
Earlier, on May 16, 2022, Refinitiv Benchmark Services (UK) Limited (RBSL), the administrator of CDOR, had announced, on May 16, 2022, that CDOR will cease publication after June 28, 2024 and will be discontinued over a two-stage transition period. The first stage would run until the end of June 2023, when all new derivative contracts and securities would be expected to transition using an alternative rate like the Canadian Overnight Repo Rate Average (CORRA) and the second stage, until June 30, 2024, would provide market participants with additional time to transition their loan agreements and deal with potential issues related to the redocumentation of legacy securities. The Canadian Alternative Reference Rate (CARR) working group has recommended the use of CORRA or a similar alternative benchmark rate for pricing Bankers’ Acceptances. CARR is developing a one-month and three-month Term CORRA benchmark, with the objective of making such a benchmark available for use by the end of the third quarter of 2023. Market participants are also encouraged to retain legal counsel and file applications for exemptive relief with the applicable securities regulators to facilitate an orderly transition away from Bankers’ Acceptances.
- Update on CDOR Cessation
- Capital Adequacy Guideline (in French)
Keywords: Americas, Canada, Banking, Basel, Regulatory Capital, Benchmark Reforms, Interest Rate Risk, CORRA, CDOR, CSA, AMF Quebec
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous ArticleBNM Proposes Financial Inclusion Framework and KYC Guidance
ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures
The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).
NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks
The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development
EBA Issues Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.
EC Adopts Regulation on Own Funds, Issues Other Updates
The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model
CDP Platform to Report Plastic-Related Impact, Issues Other Updates
The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide
IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments
The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,
BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks
The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.
FCA Sets Out Business Plan, Launches TechSprint on Greenwashing
The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets
UK Committee Sets Out Recommendations for Next Phase of Open Banking
The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members
ECB Publishes Multiple Regulatory Updates for Banking Institutions
The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,