Refinitiv to Publish ARRC-Recommended Fallback Rates in September

Refinitiv, a London Stock Exchange Group business that provides financial markets data, will begin publishing "forward looking term rate versions of its Alternative Reference Rates Committee ("ARRC") recommended fallback rates - USD IBOR Cash Fallbacks - in September 2022." The ARRC selected Refinitiv to publish its recommended fallback rates for cash products in March 2021. Refinitiv announced in December 2021 that it released production fallback rates based upon various SOFR conventions.

The ARRC endorsed 1-month, 3-month, 6-month, and 12-month CME Term SOFR rates for use in legacy LIBOR cash products that will convert to SOFR under ARRC’s recommended fallback language. Refinitiv stated that it "has secured the necessary licensing agreements with CME to publish these rates."

The ARRC "welcomed" Refinitiv's announcement, noting that the published rates will be especially helpful for legacy consumer loans, "where consumers will need clear and simple resources that can provide them access to the new rate that will replace LIBOR in their contracts." The ARRC stated that "recommended fallbacks for legacy consumer loans will go into effect when the transition period spread has been officially set, after June 30, 2023."