A second term SOFR: help or hindrance?

Ice launches CME rival as fallback for loans but market ambivalence may put endorsement out of reach


Like buses, regulator-endorsed term SOFR took ages to arrive – and now there are two of them.

Ice Benchmark Administration launched its term version of the secured overnight financing rate in March, citing market need for a back-up to CME’s term SOFR. But some say the CME’s rate, which is referenced by most cash instruments and – critically – is regulator-endorsed, already covers market requirements.

IBA president Tim Bowler nonetheless argues the need for a second option.

“One of the things

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here