Letter to FRB, OCC and FDIC regarding implementation of IOSCO-aligned credit spread reference benchmarks for SOFR
SOFR Academy has written a letter to U.S. regulators regarding implementation of IOSCO-aligned credit spread reference benchmarks for the Secured Overnight Financing Rate (SOFR). The letter provides background information on the motivation for the development of the USD Across-the-Curve Credit Spread Index (AXI) and its extension the USD Financial Conditions Credit Spread Index (FXI), notes that concerns expressed by regulators in connection with other credit sensitive proposals do not apply to AXI or FXI, highlights IBM Promontory’s opinion that relevant IOSCO Principles are fully implemented, and notes that the introduction of AXI and FXI into U.S. commercial lending markets will make the banking system and, in turn, the U.S. economy more resilient during times of economic stress.
Read the letter here.
