Overall Transition Materials

Best Practices for Use of Forward-Looking SOFR Term Rate and Related FAQs

August 27, 2021
On July 21, 2021, the ARRC announced conventions and use cases for how best to employ the SOFR Term Rate to successfully transition away from USD LIBOR. These conventions and use cases apply to CME Group's forward-looking SOFR term rates, which the ARRC formally recommended on July 29, 2021.

On August 27, 2021, the ARRC released Related FAQs about the use cases for how best to employ the SOFR Term Rate.

Frequently Asked Questions

August 27, 2021
This set of frequently asked questions, which is updated from time to time to reflect developments, provides information about the work of ARRC, its progress to date and the overall effort to promote voluntary market adoption of its recommended alternative to USD LIBOR, the SOFR.

The ARRC previously issued a press release when the frequently asked questions were initially published on September 20, 2018. The ARRC has since updated this document on an ongoing basis.

SOFR Term Rates Factsheet

July 29, 2021
ARRC announced that it is now formally recommending CME Group’s forward-looking SOFR term rates, following the completion of a key change in interdealer trading conventions on July 26, 2021 under the SOFR First initiative. In conjunction with this development, the ARRC also released a factsheet outlining key steps leading to this point, SOFR’s strengths, and upcoming milestones.

Guide to Published SOFR Averages

May 11, 2021
The ARRC released the Guide to Published SOFR Averages in order to provide market participants – and nonfinancial corporates in particular – with key information on the LIBOR transition, including how the published SOFR Averages can be used today and what factors market participants should consider before selecting the alternative rate they use.

Market Indicators that Would Support an ARRC Recommendation of a Forward-Looking SOFR Term Rate

May 6, 2021
The ARRC published a set of market indicators that it will consider in recommending a forward-looking SOFR term rate. The ARRC has long recognized that a forward-looking term SOFR rate will be a useful tool to support the transition away from LIBOR. The publication of the indicators builds on the ARRC’s March 23 update, ongoing ARRC discussions, and term rate principles, and provides clear guidance that would allow the ARRC to recommend a SOFR-based term rate relatively soon.

Guide on the Endgame for USD LIBOR

April 21, 2021
The ARRC updated it guide about the endgame for USD LIBOR. The guide was initially released in December 2020 following the November 30, 2020 announcements made by U.S. and UK regulators and LIBOR's administrator regarding USD LIBOR. It has since been updated following the March 5, 2021 announcements by LIBOR's administrator and regulator that provided further detail on precisely when LIBOR panels will end. 

Key Principles to Guide the ARRC as it Considers the Conditions it Believes are Necessary to Recommend a Forward-Looking SOFR Term Rate

April 20, 2021
The ARRC announced key principles for an ARRC-recommended forward-looking SOFR term rate in order to help guide the ARRC as it considers the conditions it believes are necessary to recommend a SOFR term rate. These principles will inform the ARRC’s continued consideration of a SOFR-based term rate.

Progress Report on the Transition from USD LIBOR

March 22, 2021
The ARRC released a Progress Report on the Transition from USD LIBOR. This report provides an overview of the LIBOR transition, including a timeline of concrete steps taken in the transition, a table of remaining LIBOR exposures, and data on the development of alternative markets. The report also offers insight into where progress away from USD LIBOR will need to materially accelerate for the market to be adequately prepared.

ARRC FAQs Regarding the Occurrence of a Benchmark Transition Event

March 8, 2021
In a statement, which was released with associated FAQs, the ARRC confirmed that in its opinion the March 5, 2021 announcements by ICE Benchmarks Administration and the U.K. Financial Conduct Authority on future cessation and loss of representativeness of the LIBOR benchmarks constitutes a “Benchmark Transition Event” with respect to all USD LIBOR settings pursuant to the ARRC recommendations regarding more robust fallback language for new issuances or originations of LIBOR floating rate notes, securitizations, syndicated business loans, and bilateral business loans.

User's Guide to SOFR

March 1, 2021
On March 1, 2020, the ARRC updated its User's Guide to SOFR which was originally published on April 22, 2019 to help explain how market participants can use SOFR in cash products.

Recommended Best Practices

September 3, 2020
On September 3, 2020 the ARRC updated its recommended Best Practices that were initially published in May 2020. The Best Practices aim to clarify the timelines and interim milestones that the ARRC believes are appropriate for transitioning away from USD LIBOR in a way that will minimize market disruption and support a smooth transition through the broad voluntary adoption of the SOFR.

They were adjusted in September 2020 following the publication of updates to bilateral business loan fallback language. In order to reflect that publication, the ARRC has updated its Best Practice recommendations to state that new bilateral business loans should incorporate hardwired or hedged fallback language by October 31, 2020. The recommendation for new syndicated business loans to incorporate hardwired fallback language by September 30, 2020 remains unchanged.

The Best Practices also include an accompanying fact sheet.

SOFR Starter Kit

August 07, 2020
The ARRC released the SOFR Starter Kit, a set of factsheets to inform the public about the transition away from USD LIBOR to SOFR. The SOFR Starter Kit aims to help anyone impacted by the transition quickly familiarize themselves with the history and core issues involved in transitioning. It is segmented into three parts:

2020 Objectives

April 17, 2020
The ARRC's key objectives for 2020 aim to advance the group's work and mission. These goals and anticipated milestones build on the ARRC's existing work and underscore the important progress that the ARRC has made toward achieving market readiness and supporting the voluntary adoption of SOFR, the ARRC's recommended alternative to USD LIBOR.

Buy-Side Checklist for SOFR Adoption

January 31, 2020
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.

Practical Implementation Checklist for SOFR Adoption

September 19, 2019
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.

2019 Incremental Objectives

June 06, 2019
This document complements the ARRC's Paced Transition Plan by outlining key priorities and milestones in 2019 to support and prepare market participants for the transition.

SOFR: A Year in Review

April 29, 2019
The ARRC published a report on the progress made during the first year of daily publication of SOFR, which began in 2018.

A User's Guide to SOFR

April 22, 2019
The 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.

ARRC Second Report

March 05, 2018
This report summarizes the choice of SOFR as its recommended alternative to USD LIBOR and enhancing the ARRC's Paced Transition Plan seeking to promote the use of SOFR on a voluntary basis.

ARRC Interim Report and Consultation

May 20, 2016
This report summarizes the ARRC's progress in narrowing the set of potential rates that might be chosen as an alternative to USD LIBOR and in considering potential plans for transition to the chosen rate.