The ARRC announced that it will conduct a webinar called Using the DTCC LIBOR Replacement Index Communication Tool to Support the Transition Away from USD LIBOR on May 24, 2023. The webinar will focus on how market participants can leverage the DTCC LIBOR Replacement Index Communication Tool to disseminate rate and conforming change information about chosen alternative reference rates for securities with CUSIPS that are transitioning away from LIBOR, as recommended by both the ARRC and the official sector. The webinar will air live at 1:00 PM ET on Wednesday, May 24. It will be available for members of the public who can register here. For those who are unable to join the live event, please note that a recording will be available shortly afterwards on the ARRC’s website.

In connection with the launch of the DTCC's LIBOR Replacement Index Communication Tool, the ARRC's Operations and Infrastructure Working Group has prepared a series of questions and answers that may be useful to market participants as they learn how to most effectively utilize the Tool to help facilitate a smooth transition of legacy contracts. In particular, this document lays out potential questions about using the DTCC LIBOR Replacement Index Communication Tool in scenarios in which USD LIBOR will be replaced by another benchmark when USD LIBOR ceases or is no longer representative (which is expected to occur for resets occurring after June 30, 2023).

The ARRC has recommended that all determining persons, their agents, or other parties responsible for the dissemination of the change information regarding LIBOR debt and securitizations should use DTCC's enhanced LENS system (DTCC's LIBOR Replacement Index Communication Tool) for communicating rate and conforming changes. The LIBOR Replacement Index Tool provides a centralized source and template for the change information as well as access across the financial eco-system from issuers to investors and holders of the securities, with the aim to reduce the operational risk of the transition and potential reconciliation breaks of future coupon payments. To access the LIBOR Replacement Index Communication Tool, participants can go to the existing LENS service page, and choose the LIBOR enhanced service.

The ARRC requests voluntary participation in a survey regarding vendor preparedness to transition from USD LIBOR to the SOFR. The survey gives vendors an opportunity to contribute information to the ARRC about transition readiness and challenges. Vendors may also find it useful to use the survey as a self-assessment tool and share their responses directly with clients.

Submitting Responses

As noted in the letter that accompanies the survey, the ARRC asks vendors to input responses to Section I in the spreadsheet, and submit the spreadsheet by email to the ARRC Secretariat. Please do not submit any responses to Section II. Indicate "Vendor Survey" in the subject line of your email, and provide only one response per institution.

In recognition of the complexity that the LIBOR transition presents for firms' internal systems, the ARRC has identified processes and systems that may be affected and their dependencies. Today the ARRC has released a taxonomy that firms can use to structure their transition away from LIBOR. This document can be an important aid for firms planning for the transition and fills in many of the details that have been outlined in earlier ARRC publications, beginning with the User's Guide to SOFR and including the Practical Implementation Checklist and Buy-Side Checklist.

The ARRC released responses to a vendor readiness survey that was issued on January 31, 2020. The survey aims to help software and technology vendors assess their readiness to transition to SOFR. The survey also serves as a platform for vendors to raise operational issues to the ARRC.

The ARRC continues to take in responses to Section I of the survey and encourages more vendors to respond.

Submitting Responses
As noted in the letter that accompanies the survey, the ARRC asks vendors to input responses to Section I in the spreadsheet, and submit the spreadsheet by email to the ARRC Secretariat (arrc@ny.frb.org). Please do not submit any responses to Section II. Indicate "Vendor Survey" in the subject line of your email, and provide only one response per institution.

Webcast Details
ARRC representatives hosted a webcast on Monday, February 10, 2020 to answer vendors' questions. A recording of the webcast can be viewed via this link.

The ARRC released a practical implementation checklist to help market participants transition to using SOFR, which is the ARRC's recommended alternative to USD LIBOR.

The ARRC released recommended best practices for technology and operations vendors relevant to the transition. The document calls on these vendors to complete all remaining enhancements to their product offerings that are necessary to support SOFR and outlines dates after which no new LIBOR-based activity should be conducted.

ARRC released a white paper to help explain how market participants can use its recommended alternative to USD LIBOR, SOFR, in cash products. This paper builds on the ARRC’s work developing the Paced Transition Plan, which outlines the steps for an effective shift to SOFR.

The ARRC released a buy-side checklist, which outlines the steps for an effective shift to SOFR, and is designed to be used alongside the User's Guide to SOFR. It is similar to the practical implementation checklist released in 2019, but is more narrowly intended for use by buy-side firms.