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Latest Milestone In LIBOR Replacement Passed - Finance and Banking


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This past Monday, July 26, marked passage of the most recent
major milestone in the replacement of LIBOR as the benchmark USD
interest rate.  Following the recommendation of the CFTC s
Market Risk Advisory Committee (MRAC) Interest Rate Benchmark
Reform Subcommittee, on July 26, 2021 interdealer brokers replaced
trading in LIBOR linear swaps with SOFR linear swaps.  This
switch is a precursor to the recommendation of SOFR term
rates.  The switch does not apply to trades between dealers
and their non-dealer customers.
The July 26 switch, part of phase one of MRAC s SOFR ....

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