The Alternative Reference Rates Committee ("ARRC") highlighted market indicators that it will consider when recommending a forward-looking Secured Overnight Financing Rate ("SOFR") term rate:
- continued growth in the volume of overnight SOFR-linked derivatives;
- a discernable increase in the liquidity of SOFR derivatives; and
- visible growth in cash products offerings, such as loans, that are linked to SOFR averages, either in advance or in arrears.
- ARRC Press Release: ARRC Identifies Market Indicators to Support a Recommendation of a Forward-Looking SOFR Term Rate
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