The Alternative Reference Rates Committee ("ARRC") outlined the conditions that a forward-looking Secured Overnight Financing Rate ("SOFR") term rate must fulfill in order to substantiate an ARRC recommendation. The key principles include "the development of sufficient liquidity in SOFR derivatives markets and recommendations for an appropriate scope of use for the term rate."
The ARRC "encourage[d] market participants not to wait for a term rate and to make use of current SOFR conventions available now."
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