ARRC Selects Administrator for Forward-Looking Term SOFR

The Alternative Reference Rates Committee ("ARRC") plans to recommend CME Group as the administrator for a forward-looking Secured Overnight Financing Rate ("SOFR") term rate.

ARRC evaluated proposals based on (i) technical criteria, (ii) firm criteria, (iii) public policy criteria and (iv) calculation methodology criteria. From the evaluation process, ARRC "conclusively identified" CME Group's proposal as "most effectively" meeting the criteria.

ARRC emphasized that it will make its recommendation once market indicators for the term rate are met (see previous coverage here).