DTCC Launches "LIBOR Benchmark Replacement Index" Resource

The Depository Trust and Clearing Corporation ("DTCC") launched a "LIBOR Benchmark Replacement Index" resource to (i) provide users a means to view information on debt securities whose rate is currently based on LIBOR and (ii) establish a central resource depository for information about alternative indices. The industry must transition from the LIBOR benchmark rates to Secured Overnight Financing Rate Data ("SOFR") or other new fallback rate indices by June 30, 2023.

Market users will be able to connect to the tool via (i) DTCC's Legal Notice System ("LENS") that acts as a repository for notices and announcements regarding securities issues or (ii) an electronic feed that provides automated capture of reference data. The Alternative Reference Rates Committee ("ARRC") recommended the use of the DTCC tool for persons responsible for sharing information about LIBOR debt. ARRC stated that use of the LENS tool will ensure consistency of rate information for securities with CUSIPS, user-friendly input templates and connectivity across the financial system from issuers to investors and third-party holders of the securities.