Industry News
All Tom Wipf News
Top stories summarized by our editors
Top stories summarized by our editors

SOFR-linked derivatives trading up 78% in Aug.

9/13/2021

As the phase-out of the London interbank offered rate approaches at year end, derivatives trading linked to the Secured Overnight Financing Rate increased by 78% in August, says TD Securities. "The [US Commodity Futures Trading Commission's] SOFR First initiative was a key step toward supercharging growth in SOFR derivatives trading," says Alternative Reference Rates Committee head Tom Wipf.

ARRC releases SOFR adoption conventions

8/3/2021

The Alternative Reference Rates Committee has released conventions and use cases for the Secured Overnight Financing Rate based on overnight collateral and repo rates and plans to allow use in derivatives contracts. "Once the SOFR First swaps convention switches on July 26 and the ARRC formally recommends the SOFR Term Rates, market participants should have what they need to use SOFR in all its forms across financial markets, including the use of the SOFR Term Rates for business loans," according to a statement from ARRC Chair Tom Wipf.

ARRC formally endorses term SOFR

7/30/2021

The Alternative Reference Rates Committee has officially recommended a series of forward-looking term benchmarks tied to CME Group's Secured Overnight Financing Rate term rate as a replacement for US dollar Libor, a move that could encourage adoption and assist with the transition away from Libor. "Market participants now have all the tools they need as we enter the transition's homestretch," ARRC Chair Tom Wipf says.

ARRC releases SOFR adoption conventions

7/27/2021

The Alternative Reference Rates Committee has released conventions and use cases for the Secured Overnight Financing Rate based on overnight collateral and repo rates and plans to allow use in derivatives contracts. "Once the SOFR First swaps convention switches on July 26 and the ARRC formally recommends the SOFR Term Rates, market participants should have what they need to use SOFR in all its forms across financial markets, including the use of the SOFR Term Rates for business loans," according to a statement from ARRC Chair Tom Wipf.

ARRC releases SOFR adoption conventions

7/23/2021

The Alternative Reference Rates Committee has released conventions and use cases for the Secured Overnight Financing Rate based on overnight collateral and repo rates and plans to allow use in derivatives contracts. "Once the SOFR First swaps convention switches on July 26 and the ARRC formally recommends the SOFR Term Rates, market participants should have what they need to use SOFR in all its forms across financial markets, including the use of the SOFR Term Rates for business loans," according to a statement from ARRC Chair Tom Wipf.

Wipf: ARRC to pursue legislation for legacy contracts at state level if need be

6/24/2021

If Congress does not pass legislation dealing with tough legacy contracts before Libor is phased out, the Alternative Reference Rates Committee will attempt to get legislation enacted in individual states, similar to how New York has adopted a law to address the problem, ARRC Chair Tom Wipf says. Alabama has already passed legislation similar to New York's.

Wipf: ARRC to pursue tough legacy at state level if need be

6/24/2021

If US lawmakers do not pass legislation dealing with tough legacy contracts before Libor is phased out, the Alternative Reference Rates Committee will attempt to get legislation enacted in individual states, similar to how New York has adopted a law to address the problem, ARRC Chair Tom Wipf says. Alabama has already passed legislation similar to New York's.

ARRC targets late July for beginning of SOFR shift

6/8/2021

Alternative Reference Rates Committee chairman Tom Wipf said that the ARRC will require dealers to price US dollar swaps transactions to the Secured Overnight Financing Rate by late July. The summer timeline means "we've got time for the market to begin to use SOFR, for clients to adapt, and it will put us in a position when we reach that hard supervisory brick wall of no new Libor that clients and all market participants will be able to transition more smoothly," said Wipf.

ARRC targets late July for beginning of SOFR shift

6/8/2021

The Alternative Reference Rates Committee aims to require dealers to price US dollar swaps transactions to the Secured Overnight Financing Rate by late July, Chair Tom Wipf says. The summer timeline means "we've got time for the market to begin to use SOFR, for clients to adapt, and it will put us in a position when we reach that hard supervisory brick wall of no new Libor that clients and all market participants will be able to transition more smoothly," Wipf says.

ARRC targets late July for SOFR quoting deadline

6/8/2021

Alternative Reference Rates Committee chairman Tom Wipf told an International Swaps and Derivatives Association Benchmarks Forum that the ARRC will consider requiring dealers to price US dollar swaps transactions to the Secured Overnight Financing Rate by late July. Wipf says the summer timeline would mean "we've got time for the market to begin to use SOFR, for clients to adapt, and it will put us in a position when we reach that hard supervisory brick wall of no new Libor that clients and all market participants will be able to transition more smoothly."