TORONTO: The Bank of Canada announced its intention on Tuesday to become the administrator of the Canadian Overnight Repo Rate Average (CORRA), a key reference rate for financial market transactions,

when enhancements to CORRA take effect next year.

CORRA, which measures the average cost of overnight collateralized funding and is currently administered by Refinitiv, will be based on a wider set of transaction data provided by the Investment Industry Regulatory Organization of Canada, with the aim of making it more representative of the repurchase agreement market, the central bank said. The target date for implementing the enhanced methodology is the second quarter of 2020, the bank said.