CARR publishes results of consultation, recommended CDOR FRN fallback language

The Canadian Alternative Reference Rate working group (CARR) today published the results of its consultation on its proposed methodology for calculating CORRA-in-arrears as well as draft fallback language for floating rate notes (FRNs) that reference CDOR. At the same time, CARR published its final recommended CDOR FRN fallback language.

CARR thanks all those who provided feedback on the consultation. All comments received were carefully reviewed by CARR members. Reflecting feedback from the consultation, the Bank of Canada began publishing a CORRA Compounded Index in April 2021. The CDOR FRN fallbacks were also redrafted to closely align them with ISDA’s fallback language for derivatives, reflecting consultation feedback, including from a number of large CDOR FRN issuers.

The CARR co-chairs issued the following statement about the announcement:

“We would like to thank everyone who responded to CARR’s consultation, and strongly recommend that CDOR FRN issuers include robust fallback language in their FRNs. As the ‘tough legacy’ problems faced by other jurisdictions has revealed, it is crucial for FRNs and other contracts to include robust language in case the reference rate being used disappears.”

CARR is a group of financial sector firms and public sector institutions working to ensure Canada’s interest rate benchmark regime is robust, relevant and effective in the years ahead. CARR was established under the auspices of the Canadian Fixed Income Forum.

For further information, please contact:

Market inquiries:


Financial Markets Department
Bank of Canada
613-782-7768


CARR co-chair
Managing Director and Vice Chair
CIBC Capital Markets

Media inquiries:

Media Relations
Bank of Canada