BackgroundFor an in-depth discussion of previous submission and calculation processes, the events that gave rise to the heightened regulatory interest in the Canadian Dollar Offer Rate ("CDOR"), and the rationale for reform of the To set the reference rate, please refer to our previous bulletin here. To provide a brief introduction, the CDOR is a money market reference rate. It was calculated using quotes voluntarily provided in a daily survey of bankers' acceptances (“BA”) market makers. However the same rate is also used in various variable rate financing arrangements, notes and derivatives. The reporting participants, i.e. the major Canadian banks, used several methods to prepare their bids, but the process could be loosely described as adjusting the previous day's CDOR rate and submitting it in light of changes in certain factors. The trial was administered by Thomson Reuters; conducted the survey every day at 10:00 am, averaged the proposals after excluding high and low bid prices, and published the results on Reuters terminals by 10:15 am. CDOR rates were also reported on Bloomberg. There has been a flurry of activity around key rates. In 2012, the UK Chancellor of the Exchequer established the Wheatley Review of LIBOR, which published a series of recommendations to address concerns relating to the London Inter-Bank Offered Rate. In 2013, the Investment Industry Regulatory Organization of Canada (“IIROC”) followed suit and released a similar report on CDOR, including its own recommendations to strengthen safeguards on the integrity of the Canadian benchmark rate . And most recently, in July 2013, the International Organization of Securities Commissions (“IOSCO”) released its final report identifying global activities and processes… middle of paper…” Likewise, the Code of Reporters The Code of Conduct prepared by the banks of the CDOR Committee in consultation with the IIROC and the Bank of Canada has yet to be published, but it is known that the code "will specify minimum standards for submission methodology, internal oversight and recordkeeping” relating to CDOR Proposals. We will continue to monitor ongoing initiatives by Canadian regulators and industry to strengthen the governance of CDOR and will provide market participants with information on any new developments as they arise . by RD Jeffrey Rogers, Shahen Mirakian and Anna Tombs, Student-At-Lawa Cautionary Note The above provides an overview only and does not constitute legal advice. Readers are cautioned not to make decisions based solely on this material. Specific legal advice should be obtained.