The Depository Trust & Clearing Corporation (DTCC) has launched its new LIBOR Benchmark Replacement Index solution to support the industry’s transition from LIBOR benchmark rates to Secured Overnight Financing Rate Data (SOFR).
DTCC’s new solution will also aid the transition to new fallback rate indices by 30 June 2023.
The solution will be accessible by market participants through DTCC’s Legal Notice System (LENS) as well as through an automated data feed which will support machine-to-machine capture of standardised reference data.
By using the new solution, users will have access to information for over 100,000 debt securities whose rates are currently based on USD LIBOR and leverage LENS to disseminate the new alternative indices, with bulk upload capabilities.
The solution can also be leveraged by subscribers to stay informed on LIBOR replacement rate information submitted by issuers, trustees and agents.
“LIBOR cessation is a significant operational undertaking that could pose risk for firms around the globe,” said Scott Longo, head of the LIBOR Program at State Street Corporation and co-chair of the ARRC’s Operations and Infrastructure Working Group.
“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.”
Users of the solution will benefit from a single user interface, standardised data and a flexible output which will offer the ability to choose how data is received.
Alongside this new solution, DTCC Data Services will provide data on various USD LIBOR-impacted debt securities to market data vendors and subscribed users through automated data feeds, which it states will help the industry prepare for the transition and facilitating increased transparency.
“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,” 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.”