The creation of the benchmark, which would exist alongside the Canadian Dollar Offered Rate (CDOR), Canada’s version of LIBOR, echoes efforts in other countries to develop new risk-free or nearly risk-free reference rates. 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 ##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 .