FCA proposes using CME’s term SOFR for synthetic US Libor
IBA agrees to use rival’s ARRC-endorsed benchmark to avoid bifurcating the market
The UK’s Financial Conduct Authority will force the temporary publication of a ‘synthetic’ version of US dollar Libor to sweep in a tail of international tough legacy contracts, which would not be covered by a US legal fix.
Libor’s administrator, Ice Benchmark Administration, would be compelled to continue publishing the rate after June 2023 using an alternative methodology, comprising a term version of the secured overnight financing rate, or SOFR, plus credit adjustments devised by the
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