The Alternate Reference Rates Committee (ARRC), convened under the auspices of the Federal Reserve Bank of New York, has published a “Guide on the Endgame for USDA LIBOR” that encompasses the flurry of announcements made last week about the postponement of the demise of the most heavily used tenors of US Dollar LIBOR.
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Federal Reserve Banks
ARRC Publishes Additional LIBOR Replacement Materials
By Guy C. Dempsey Jr. on
On June 30, the Alternate Reference Rate Committee (ARRC) that works under the auspices of the Federal Reserve Bank of New York published another document to assist capital markets participants in their transition away from use of LIBOR as a transactional interest rate.
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LIBOR Transition Best Practices Statement Issued by ARRC
By Guy C. Dempsey Jr. on
Posted in Banking, Derivatives
On May, 27, the Alternate Reference Rate Committee (ARRC) that works under the auspices of the Federal Reserve Bank of New York issued a set of “Best Practices for Completing Transition Away from LIBOR.” The Best Practices reinforce the ARRC’s position that markets should cease using the London Inter-bank Offered Rate (LIBOR) as a reference rate in financial transactions well before the December 31, 2021 end date identified by UK regulators by providing specific dates by which specific products should be LIBOR-free.
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ECB Speech on Central Clearing
On February 26, Fabio Panetta, Executive Board Member at the European Central Bank (ECB), gave a speech on cross-border co-operation within the central counterparty (CCP) community. The speech was given at the Second Joint Bundesbank/ECB/Federal Reserve Bank of Chicago Conference on CCP Risk Management.
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CFTC Requests Comment on Proposal To Exempt Federal Reserve Banks From Sections 4d and 22 of the CEA
By Kevin M. Foley & Timothy D. Kertland on
Posted in CFTC, Derivatives
On June 2, the Commodity Futures Trading Commission proposed to exempt Federal Reserve Banks that provide customer accounts to systematically important derivatives clearing organizations (SIDCOs) from Sections 4d and 22 of the Commodity Exchange Act (CEA).
As a result, Federal Reserve Banks would be permitted to hold cash, securities and property deposited into a customer account by a SIDCO in accordance with the standards that otherwise apply to Federal Reserve Banks, including permitting SIDCOs to maintain customer accounts with Federal Reverse Banks pursuant to the standard of liability set forth in the Federal Reserve Bank Governing Documents. In addition, the proposal would exempt Federal Reserve Banks from liability with respect to the exempted requirements under the private right of action for damages pursuant to Section 22 of the CEA.
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