08 Jun CFTC – Interest Rate Benchmark Reform Subcommittee Recommends July 26, 2021, as the date for Transitioning Interdealer Swap Market Trading Conventions from LIBOR to SOFR
June 8, 2021 – CFTC Market Risk Advisory Committee’s (MRAC) Interest Rate Benchmark Reform. The subcommittee voted recommendation for transition of USD derivatives from LIBOR.
Recommended switching interdealer trading conventions from LIBOR to Secured Overnight Financing Rate (SOFR) for US dollar USD linear interest rate swaps. MRAC subcommittee initiative, SOFR First, is the third recommendation, including FAQs. SOFR’s first milestone of July 26, 2021, consistent with supervisory guidance for banks to cease entering into new contracts that use USD LIBOR as a reference rate.
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