Banking Law News

Libor Heir Takes Step Forward With Fed Plan for Term Benchmarks

Nov. 4, 2019, 7:13 PM

The Secured Overnight Financing Rate is taking another step in its campaign to supplant the London interbank offered rate as the major benchmark in dollar funding markets, with officials on Monday outlining further plans for its development.

The Federal Reserve Bank of New York, in conjunction with the Treasury Department’s Office of Financial Research, is proposing to publish compounded averages for SOFR that will create benchmarks at 30, 90 and 180 days, it said in a statement on its website. They are also creating an index that would allow calculations for custom time periods.

The New York Fed said it...

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