The Canadian Alternative Reference Rate ##s Group ( CARR ) has proposed expanding the range of transactions used to calculate CORRA and introducing a new methodology for calculating the RFR , according to a consultation paper published by the Bank of Canada . CARR proposed that the RFR would be based on all overnight repo transactions using Government of Canada bonds and treasury bills as collateral . Its proposed calculation methodology is based on the trimmed daily median repo rates of the relevant transactions . The group also proposed the launch of two new working groups , one tasked with transitioning widespread use of the method and the other with constructing a term RFR benchmark .
The Canadian Alternative Reference Rate Working Group (CARR) has proposed expanding the range of transactions used to calculate CORRA and introducing a new methodology for calculating the RFR, according to a consultation paper published by the Bank of Canada. CARR proposed that the RFR would be based on all overnight repo transactions using Government of Canada bonds and treasury bills as collateral. Its recommended calculation methodology is based on the trimmed daily median repo rates of the relevant transactions. The group also announced the launch of two new working groups, one tasked with transitioning widespread use of the RFR and the other with constructing a term RFR benchmark.