As of February 2024, this website is no longer being updated. ARRC documents remain critical to an enduring system of robust reference rates. As noted in the ARRC’s Closing Report, the New York Fed plans to launch a new sponsored group in 2024 to promote the integrity, efficiency, and resiliency in use of reference rates and to promote the ARRC’s critical best practice recommendations.

Overall Transition Materials

ARRC Closing Report: Final Reflections on the Transition from LIBOR

November 30, 2023
The Alternative Reference Rates Committee (ARRC) released the ARRC Closing Report: Final Reflections on the Transition from LIBOR and announced the conclusion of the group itself, following a successful transition from U.S. dollar (USD) LIBOR.

ARRC Statement on the Last 30 Days before U.S. Dollar LIBOR Panels End

May 31, 2023
The ARRC released a statement reiterating that the U.S. Dollar LIBOR panel will cease at end-June 2023. There has long been clear messaging from the ARRC and similar public-private groups worldwide, as well as international and domestic official sector bodies, on the urgent need for an orderly transition away from LIBOR. With only 30 days remaining, the ARRC urges market participants with LIBOR exposures to complete their transition efforts now, and to draw upon the numerous resources and tools that have been made available over the past several years to facilitate this. Those that are not prepared risk significant ramifications, including uncertain and potentially unfavorable outcomes regarding their legacy LIBOR contracts along with operational disruptions. These risks underscore that it is essential that all market participants complete their transition of remaining LIBOR contracts now.

Summary and Update of the ARRC’s Term SOFR Scope of Use Best Practice Recommendations

April 21, 2023
The ARRC released a Summary and Update of the ARRC’s Term SOFR Scope of Use Best Practice Recommendations which provides a follow-up to the initial paper published in July 2021. This latest document includes a series of illustrative examples to help demonstrate the application of the ARRC’s recommendations in various scenarios in order to enhance awareness amongst market participants. The document also adds a slight, targeted adjustment to the scope of use recommendation which is intended to allow for some trading of Term SOFR- SOFR basis swaps between dealers and non-dealer market participants, even if the market participant is not a direct party to a Term SOFR cash exposure. This summary and update document, however, is not intended to either broaden or narrow other elements of the ARRC’s July 2021 Best Practice Recommendations Regarding Use of Term SOFR. While it does recognize a wider potential scope of use specifically for Term SOFR-SOFR basis swaps between dealers and non-dealer market participants, the ARRC continues to recommend that dealers strictly avoid trading any Term SOFR derivatives with other dealers as such activity could compromise the robustness of Term SOFR.

Summary of Key ARRC Recommendations

January 25, 2023
The ARRC released a  Summary of Key ARRC Recommendations, a document which highlights 3 main messages as the LIBOR transition enters its final stages. The ARRC recommends market participants: 1) Take action now to remediate legacy contracts ahead of June 30, 2023; 2) Communicate planned rate changes and use the DTCC’s enhanced LENS system as soon as available to effectively disseminate information on rate changes for securities; and 3) Use the Secured Overnight Financing Rate (SOFR) as the replacement rate for USD LIBOR and as the basis of the transition in cash and derivatives markets. The ARRC and official sector recommend that use of Term SOFR remain limited to support financial stability. The importance of these recommendations was recently reinforced in official sector statements delivered in connection with the December 2022  FSOC meeting  and in the  2022 FSOC Annual Report , which recommended overnight SOFR as the primary reference rate for derivatives and cash markets and for market participants to progress towards an orderly transition away from LIBOR before June 30, 2023.

LIBOR Legacy Playbook

July 11, 2022
The ARRC released the LIBOR Legacy Playbook, a guide describing the existing broad frameworks to support the transition of legacy LIBOR cash products. While not intended to provide legal advice, the guide aims to provide tools and resources, including a compilation of best practice recommendations and reference materials, to assist market participants in ensuring that the transition from LIBOR is operationally successful. Preparation is especially important given the large number of legacy contracts that will need to transition from LIBOR; the scale of transition for USD LIBOR legacy products is far greater than for the other LIBOR currencies and market participants will need to plan accordingly.

For increased ease in navigating the guide, the LIBOR Legacy Playbook is available in both PowerPoint and Word document  formats. Please note, both formats of the Playbook are identical in content, with only the layouts differing.

ARRC Provides Update Endorsing CME 12-Month SOFR Term Rate

May 19, 2022
The ARRC today provided an update, announcing its endorsement of the CME Group's forward-looking 12-month SOFR term rate for certain uses in line with its Best Practice Recommendations Related to Scope of Use.

2022 Objectives

February 17, 2022
The 2022 Objectives reflect the ARRC's efforts to continue supporting the transition away from LIBOR by preparing markets for the end of USD LIBOR in 2023 and encouraging the voluntary use of SOFR as a more robust and resilient alternative.

Year-End Progress Report: The Transition from U.S. Dollar LIBOR

December 16, 2021
This report provides a brief update on progress in the transition away from LIBOR ahead of the year-end deadline set by supervisors calling on banks to end new use of USD LIBOR, and the cessation of certain LIBOR panels after December 31, 2021. Overall, the ARRC observes that considerable progress has been made in the transition away from LIBOR to SOFR in cash and derivatives markets since the last progress report.

Statement of the Alternative Reference Rates Committee as the “Relevant Recommending Body” under State LIBOR Legislation with respect to 1-week and 2-month USD LIBOR tenors

December 3, 2021
The ARRC as "Relevant Recommending Body" under New York and Alabama State LIBOR Legislation (State LIBOR Legislation), released a statement selecting and recommending forms of the SOFR, along with associated spread adjustments and conforming changes, to replace references to 1-week and 2-month U.S. dollar (USD) LIBOR in certain contracts affected by the State LIBOR Legislation. More information on the New York State legislation which informed these recommendations can be found in the FAQs also released today.

ARRC Recommends Acting Now to Slow USD LIBOR Use over the Next Six Weeks to be Well-Positioned to Meet Supervisory Guidance by Year-End

October 14, 2021
The ARRC released a statement recommending that all market participants act now to slow their use of USD LIBOR and leverage the next six weeks as a key window to reduce such activity to promote a smooth end to new LIBOR contracts by the end of the year. Proactively slowing new use of LIBOR will support firms’ efforts to safely meet the supervisory guidance as they enter the final months of the year, during which resource limitations and potential constraints on systems changes and testing may exist due to year-end deadlines.

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.