On February 23, 2023, the Canadian Securities Administrators released Staff Notice 25-309 Matters Relating to Cessation of CDOR and Expected Cessation of Bankers’ Acceptances (the CDOR Staff Notice). The information in the CDOR Staff Notice is helpful to market participants who need to focus on potential issues relating to the Canadian Dollar Offered Rate (CDOR), and the resulting cessation of Bankers’ Acceptances (BAs). CDOR will cease to be published on June 28, 2024.

For registered firms, Multilateral Instrument 25-102 Designated Benchmarks and Benchmark Administrators provides that if certain market participants (including registrants) use a designated benchmark such as CDOR, and the benchmark cessation could have a significant impact on the market participant (or a security it issues or a derivative to which it is a party), the market participant must have a written plan outlining the actions it will take.

The CDOR Staff Notice also suggests that certain institutional investors may need to consider the use of alternative products to BAs.

February 28, 2023