ARRC Highlights "Market Indicators" for Recommendations on Forward-Looking SOFR Term Rate

The Alternative Reference Rates Committee ("ARRC") highlighted market indicators that it will consider when recommending a forward-looking Secured Overnight Financing Rate ("SOFR") term rate:

• continued growth in the volume of overnight SOFR-linked derivatives;

• a discernable increase in the liquidity of SOFR derivatives; and

• visible growth in cash products offerings, such as loans, that are linked to SOFR averages, either in advance or in arrears.