The Federal Reserve Bank of New York (New York Fed) today updated its Statement of Compliance with the IOSCO Principles for Financial Benchmarks (the Principles). The statement is updated each year to reflect any changes that may have occurred, and this year also includes the 30-, 90- and 180- day SOFR Averages and SOFR Index.
The New York Fed’s Audit Group independently reviewed the organizational and operational framework used to administer the EFFR, OBFR, TGCR, BGCR, SOFR, SOFR Averages, and SOFR Index with respect to governance, quality of the benchmark, quality of the methodology, and accountability. The Audit Group determined that these reference rates are also in compliance with the Principles.
In 2013, IOSCO published the Principles, which were then endorsed by the Financial Stability Board as being standards of best practice for benchmark administration. The purpose of releasing an updated version of this statement is to increase transparency surrounding the administration of these benchmarks in a manner consistent with the Principles. The New York Fed will continue to assess the compliance of all of its reference rates with the Principles on an annual basis and issue a Statement of Compliance accordingly.