DTCC launches service to support transition from LIBOR benchmark rates
13 March 2023 US
Image: AdobeStock/Nicholas
The Depository Trust and Clearing Corporation has launched a LIBOR Benchmark Replacement Index solution to support the industry’s transition to alternative interest rate benchmarks.
Users will be able to access this service via DTCC’s Legal Notice System (LENS), a repository for notices and announcements that impact securities issues, or via an electronic data feed that provides automated capture of standardised reference data.
This will provide access to securities reference data for more than 100,000 fixed income securities where the rate is based on USD LIBOR and enable users to access alternative benchmark indices, including the Secured Overnight Financing Rate (SOFR), using LENS.
The Alternative Reference Rates Committee has recommended SOFR, which is published by the New York Federal Reserve, as the primary benchmark index to replace LIBOR.
The US market infrastructure company indicates that this solution will benefit users through providing standardised data to enable machine-to-machine interactions and simplified communications, as well as access to LIBOR replacement requirements in one place through a flexible web user interface.
DTCC Data Services will also deliver data on USD LIBOR-impacted debt securities to market data vendors and via a subscription service to registered users, enabling users to stay updated on LIBOR replacement rate information from issuers, agents and trustees.
DTCC managing director, asset services business manager Ann Marie Bria, says: “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 standardised manner.
“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.”
Scott Longo, head of the State Street’s LIBOR programme and co-chair of the ARRC’s Operations and Infrastructure Working Group, comments: “LIBOR cessation is a significant operational undertaking that could pose risk for firms around the globe.
“DTCC’s new LIBOR Benchmark Replacement Index solution will be an important component of firms’ ability to efficiently update their reference data systems and communicate this information to interested parties.”
Tim Lind, managing director of DTCC Data Services, adds: “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.”
Users will be able to access this service via DTCC’s Legal Notice System (LENS), a repository for notices and announcements that impact securities issues, or via an electronic data feed that provides automated capture of standardised reference data.
This will provide access to securities reference data for more than 100,000 fixed income securities where the rate is based on USD LIBOR and enable users to access alternative benchmark indices, including the Secured Overnight Financing Rate (SOFR), using LENS.
The Alternative Reference Rates Committee has recommended SOFR, which is published by the New York Federal Reserve, as the primary benchmark index to replace LIBOR.
The US market infrastructure company indicates that this solution will benefit users through providing standardised data to enable machine-to-machine interactions and simplified communications, as well as access to LIBOR replacement requirements in one place through a flexible web user interface.
DTCC Data Services will also deliver data on USD LIBOR-impacted debt securities to market data vendors and via a subscription service to registered users, enabling users to stay updated on LIBOR replacement rate information from issuers, agents and trustees.
DTCC managing director, asset services business manager Ann Marie Bria, says: “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 standardised manner.
“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.”
Scott Longo, head of the State Street’s LIBOR programme and co-chair of the ARRC’s Operations and Infrastructure Working Group, comments: “LIBOR cessation is a significant operational undertaking that could pose risk for firms around the globe.
“DTCC’s new LIBOR Benchmark Replacement Index solution will be an important component of firms’ ability to efficiently update their reference data systems and communicate this information to interested parties.”
Tim Lind, managing director of DTCC Data Services, adds: “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.”
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