Regulatory Alerts2023-01-26 | 2023-00213Regulations Implementing the Adjustable Interest Rate (LIBOR) Act
The Board of Governors of the Federal Reserve System issued a final rule to implement the Adjustable Interest Rate (LIBOR) Act by establishing benchmark replacements for U.S. dollar LIBOR contracts lacking adequate fallback provisions. The rule designates the Secured Overnight Financing Rate (SOFR) with tenor spread adjustments as the default benchmark replacement for contracts governed by U.S. law after June 30, 2023. This action provides statutory protections and definitions to facilitate an orderly transition away from LIBOR for legacy financial agreements.
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