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The Shift From Eurodollar to SOFR is Accelerating
SOFR measures the cost of borrowing U.S. dollar cash overnight using Treasury securities as collateral. SOFR has been recommended by the U.S. Federal Reserve’s Alternative Reference Rate Committee (ARRC) and SOFR looks set to become the main indicator of USD interest rates around the world as global regulators encourage market participants to transition to SOFR ahead of the scheduled discontinuation of publication of a “representative” USD LIBOR rate after June 30, 2023. CME Group launched SOFR-based futures in 2018 to support the transition, and they have proven to be one of CME’s most successful ever ... (full story)