Where we left off: In our Mid-Year Check-In blogpost, we noted that progress in the development and readiness of some credit sensitive interest rate indices (e.g., Bloomberg’s BSBY, IBA’s Bank Yield Index and American Financial Exchange’s AMERIBOR) seemed to spark some urgency in the development of SOFR’s forward-looking term rate in Q2, including the ARRC’s selection of CME Group as administrator for Term SOFR, and the CFTC’s SOFR First Initiative to encourage primary market swaps dealers to quote USD swaps at SOFR. Those efforts culminated in the ARRC’s formal recommendation of Term SOFR for use in the bank loan market on July 29, 2021.
Continue Reading Banks Press Ahead with Term SOFR Preparation; Credit Sensitive Rates Under Scrutiny
SEC
FINRA Issues Guidance to Help Firms Prepare for LIBOR Transition
By Emily Gordy & LIBOR Transition Team on
On August 5, 2020, FINRA issued a regulatory notice outlining steps for broker-dealers to prepare for the pending transition away from LIBOR. The notice reminds firms to “evaluate their exposure to LIBOR” and “review their preparedness to manage LIBOR’s phase-out.” While the notice expressly disclaims any agency view of “specific effective practices,” it provides questions for firms to consider and a general description of best practices, which derive from responses to a survey undertaken by FINRA of a cross-section of member firms.
Continue Reading FINRA Issues Guidance to Help Firms Prepare for LIBOR Transition
The Readiness Is All: Overview of LIBOR, SOFR and Related Transition Issues
By Barlow T. Mann on
McGuireWoods associate Barlow Mann presented an Overview of LIBOR, SOFR and Related Transitions Issues as part of the firm’s SEC Compliance and Disclosure webinar series.