June 11, 2021 — Chair of our Commercial Banking and Finance Law practice group, William Walzer recently penned an article that took a closer look on New York State’s enacting a new law to ease the transition away from the US dollar London Inter-Bank Offered Rate (LIBOR), a global interest rate benchmark index based on the average of the inter-bank offered rates for deposits of various currencies.
As part of the phase-out, one-week and two-month LIBOR rates denominated in dollars will longer be published after December 31, 2021. USD LIBOR for all other maturities will cease to be published after June 30, 2023.
The Alternative Reference Rates Committee (ARRC) formed by the Federal Reserve and the Federal Reserve Bank of New York (the FRBNY) has recommended the Secured Overnight Financing Rate (SOFR) to replace LIBOR.
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