The Alternative Reference Rates Committee ("ARRC") urged market participants to "proactively slow" use of U.S. dollar ("USD") LIBOR "to promote a smooth end to new LIBOR contracts by the end of the year." The recommendations follow supervisory guidance contained in a November 30, 2021 joint interagency statement on transitioning away from the use of LIBOR as a reference rate "as soon as practicable and in any event by December 31, 2021."
The ARRC recommended the following actions to slow LIBOR usage: (i) setting reduced targets for new LIBOR activity, (ii) limiting LIBOR offerings and (iii) implementing escalation exceptions for new USD LIBOR use.
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