Canada considering interdealer trading in term Corra swaps

‘Where Canada’s market structure is unique, we will forge our own path,’ says benchmark body co-chair

The heads of the group overseeing the Canadian benchmark reform process are considering whether to allow interdealer trading of swaps linked to a term version of the country’s replacement risk-free rate, in a departure from the stricter stance of the US benchmark transition body.

If adopted, the approach will make it easier for Canadian banks to directly hedge client positions linked to a term version of the Canadian Overnight Repo Rate average (Corra) with other dealers, instead of only