‘SOFR First’ for Eurodollars downgraded to ‘best practice’
US dollar Libor transition initiative for listed derivatives comes up short
A regulatory initiative aimed at flipping quoting conventions for interest rate futures to US dollar Libor’s risk-free successor has been rehashed as a set of best practice guidelines.
The so-called SOFR First initiative, spearheaded by the Commodity Futures Trading Commission’s Market Risk Advisory Committee (MRAC), has proven effective in transitioning over-the-counter derivatives to the secured overnight financing rate since it kicked off on July 26.
Regulators set strict deadlines for
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