We’ve Found the Best Replacement for Libor

We chose SOFR because—unlike Libor—it is robust, reliable through economic cycles, and better reflects the way financial institutions fund themselves.

香蕉视频苹果下载I understand Scott Shay’s concern about Libor’s fast-approaching expiration date (“The Fed’s Libor Replacement Would Shackle Small Banks,” op-ed, Dec. 19). Yet there is much that his article leaves out in describing the Alternative Reference Rates Committee (ARRC) and the secured overnight financing rate (SOFR), the preferred alternative to U.S. dollar Libor.

The ARRC is facilitating the transition from Libor in the U.S. and we have been transparent and inclusive in our work. We maintain diverse participation across financial...