DTCC Launches LIBOR Benchmark Replacement Index

Fazzaco learned that the post-trade market infrastructure provider for global financial services, the Depository Trust & Clearing Corporation (DTCC), has announced the launch of its latest solution - the LIBOR Benchmark Replacement Index, on Mar 13.

This solution is designed to assist the industry in transitioning from LIBOR benchmark rates to alternative indices such as the Secured Overnight Financing Rate Data (SOFR) and other new fallback rate indices by June 30, 2023.

DTCC subscribers can access this solution through the Legal Notice System (LENS), which is a repository of notices specifically designed to report organizational actions that affect securities issues from issuers, agents, and trustees. Additionally, subscribers can utilize an automated data feed that will allow for machine-to-machine capture of standardized reference data.

"DTCC welcomes the opportunity to support our clients and the industry as the US market transitions away from LIBOR. We are uniquely positioned to deliver this new service, providing the industry with critical information in an efficient and standardized manner," said Ann Marie Bria, Managing Director, Asset Services Business Manager at DTCC. "With the solution now live and centrally communicating LIBOR benchmark replacement rates, we are ready to partner with market participant firms as they work to achieve compliance by the June deadline."

DTCC Data Services will not only offer the new LIBOR Benchmark Replacement Index solution, but will also provide data on numerous debt securities affected by USD LIBOR to subscribed users and market data vendors via automated data feeds. This will aid in industry preparedness for the transition and promote greater transparency.

Tim Lind, Managing Director of DTCC Data Services, added, "as a key infrastructure provider, DTCC facilitates increased transparency between issuers of securities and investors that own the debt and equity of public companies. The cessation of LIBOR impacts trillions of dollars of debt and is another example of the critical role DTCC plays in furthering the evolution of market structure."