Post-trade infrastructure provider Depository Trust & Clearing Corp. (DTCC) has launched the LIBOR Benchmark Replacement Index Solution to help firms make the transition from the corrupted London Interbank Offered Rate benchmark to the Secured Offered Financing Rate (SOFR) and other replacement rate indices by June 30, 2023. The new offering is available now via DTCC’s… Read More >>
‘Zombie Libors’ Don’t Exist & Can’t Help: OCC
Banks must avoid complacency in meeting the Dec. 31, 2021 deadline for transitioning from the ill-fated London Inter-Bank Offered Rate (Libor) to the Secured Overnight Financing Rate (SOFR) because failing to do so could cause problems with operations, safety, and soundness. In addition, banks should not be hoping for a “synthetic or zombie” Libor version that… Read More >>
CFTC Divisions Push SEFs to Dump LIBOR
CFTC Says Firms Need to Embrace SOFR Soon The CFTC wants participants in derivatives markets and the swap execution facilities (SEFs) to remember that they could face “financial, conduct, litigation, operational, and reputational risks” if they fail to adequately prepare for “a smooth and timely” London Inter-Bank Offered Rate (Libor) transition to the Secured Overnight… Read More >>
Many Firms Lack LIBOR Transition Plans: Survey
Some financial services firms are taking their sweet time to transition away from the scandal-ridden London Inter-bank Offered Rate (LIBOR) benchmark to the relatively new Secured Overnight Finance Rate (SOFR), according to a new report from consultancy Duff & Phelps. Duff & Phelps last month released the results of a survey that finds nearly half… Read More >>
Why LIBOR Documentation Is a Big Problem
The language, documentation, and content management issues involved in the financial services industry’s transition away from the London Inter-bank Offered Rate (LIBOR) has not gotten much attention. But it is problem for many firms under the gun to end their usage of LIBOR by the end of this year. So says a research report “Preparing Content for… Read More >>
Key Regulators Issue USD LIBOR Warning
Authorities: Steer Clear of USD LIBOR Key industry regulators are warning financial services firms not to use U.S. dollar (USD) LIBOR as a reference rate after Dec. 31, 2021 to avoid “consumer protection, litigation, and reputation risks.” The Nov. 30 statement, which underscores the need for firms to move away from the London Inter-bank Offered… Read More >>
Two SocGen Bankers Face Libor Rigging Charges
Two Société Générale bank managers have been indicted in a U.S. federal court for allegedly scheming to rig the London Interbank Offered Rate (Libor). Libor is of course the collection of benchmark interest rates for various currencies and maturities “to which trillions of dollars of financial transactions are tied,” as a recent announcement made jointly… Read More >>
Citi to Pay $425M to Settle Benchmark Abuse Cases
Banking giant Citi and some of its key affiliates have agreements with the CFTC to settle the regulator’s investigations into alleged abuses of the London Interbank Offered Rate (Libor), the Euroyen Tokyo Interbank Offered Rate (Euroyen Tibor) and the International Swaps and Derivatives Association Fix (Isdafix) interest rates swaps benchmarks. “Separately, Citi is charged with… Read More >>
