The Canadian Alternative Reference Rate Working Group (CARR) was created to identify and seek to develop a new term risk-free Canadian dollar interest rate benchmark. On this page, you can find more information about our mandate, market notices, publications, meetings, and membership.
Mandate
Interest rate benchmarks are a cornerstone of the global financial system and are used by market participants across a wide range of financial products and contracts. In 2013, the Financial Stability Board (FSB) established the Official Sector Steering Group (OSSG) to advise the FSB on recommendations to strengthen existing interbank offered rate benchmarks (commonly known as IBORs), as well as to promote the development of alternative risk-free or nearly risk-free reference rates that could be used for some types of transactions. Both existing and new benchmarks would need to adhere to international regulatory standards, including the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks.
In response, Canada established the Canadian Alternative Reference Rate Working Group—sponsored by the Canadian Fixed-Income Forum—to identify and seek to develop a Canadian dollar term risk-free rate benchmark that is robust, reliable, and resilient to any market stress, as well as consistent with the IOSCO Principles for Financial Benchmarks and compliant with any applicable regulations. CARR will also explore possible enhancements to the existing Canadian overnight risk-free rate, the Canadian Overnight Repo Rate Average (CORRA).
Overview on Financial Benchmark Reform Efforts
Market Notices
Results from the CARR Consultation on Enhancements to the Canadian Overnight Repo Rate Average
Bank of Canada to become the administrator of key interest rate benchmark
The Bank of Canada today announced its intention to become the administrator of the Canadian Overnight Repo Rate Average (CORRA), a key interest rate benchmark for financial markets.Bank of Canada publishes the Canadian Alternative Reference Rate Working Group’s Consultation Paper on Proposed Enhancements to the Canadian Dollar Overnight Repo Rate Average (CORRA)
Publications
ISDA IBOR Fallback Update
Enhanced CORRA Case Study
Stakeholder Presentation Overview on Financial Benchmark Reform Efforts
Consultation Paper—Enhancements to the Canadian Overnight Repo Rate Average
Principles for Enhancements to Fallback Language
Recommendation from Alternative Rates Subgroup on methodology for an enhanced CORRA
CDOR & CORRA in Financial Markets–Size and Scope - September 17, 2018
Update from Alternative Rates Subgroup on Potential Alternatives to CORRA - June 25, 2018
Market Representatives
Alberta Investment Management Corporation
Bank of America Merrill Lynch
Bank of Montreal
Canada Mortgage and Housing Corporation
Canadian Imperial Bank of Commerce
Manulife
National Bank of Canada
Ontario Teachers’ Pension Plan
PIMCO
PSP Investments
Royal Bank of Canada
Scotiabank
Sun Life Financial
TD Bank
Observers
Canadian Derivatives Clearing Corporation
LCH
Montréal Exchange