It is no secret that US dollar (USD) Libor is coming to an end. By the end of this year, banks must stop writing new USD Libor contracts. The clock is ticking; with just three months to go, significant work remains.
As chair of the Alternative Reference Rates Committee (ARRC), the group of private market participants convened by the Federal Reserve to help ensure a successful transition from USD Libor, I urge all market participants with Libor exposures to immediately act and base their new contracts on the Secured Overnight Financing Rate (SOFR) — the ARRC’s recommended alternative to USD Libor.
