The Depository Trust & Clearing Corporation has launched a new LIBOR Benchmark Replacement Index solution to support the finance industry’s transition from LIBOR benchmark rates to Secured Overnight Financing Rate Data (SOFR) as well as other new fallback rate indices by June 30, 2023.

The Depository Trust & Clearing Corporation (DTCC) has launched a new LIBOR Benchmark Replacement Index solution to support the finance industry’s transition from LIBOR benchmark rates to Secured Overnight Financing Rate Data (SOFR) as well as other new fallback rate indices by June 30, 2023. 

Market participants will be able to access the solution through DTCC’s Legal Notice System (LENS), a repository of notices designed to report organisational actions that affect securities issues from issuers, agents and trustees, as well as via an automated data feed that will support machine-to-machine capture of standardised reference data.
 
With the new solution, users will be able to view information for over 100,000 debt securities whose rate is currently based on USD LIBOR and leverage LENS to disseminate the new alternative indices, with bulk upload capabilities. Subscribers can also leverage the solution to stay informed on LIBOR replacement rate information submitted by issuers, trustees, and agents.
 
For decades, market participants have used LIBOR as the benchmark reference for determining interest rates for debt instruments, including structured securities, corporate debt (including money markets), and municipal bonds. SOFR, which is published by the Federal Reserve Bank of New York, was recommended by the Alternative Reference Rates Committee (ARRC) as the LIBOR replacement benchmark.