Letters to CEOs of certain relevant industry and trade associations regarding implementation of IOSCO-aligned credit spread reference benchmarks for SOFR which promote Banks’ ability to provide credit and support U.S. economic activity.
SOFR Academy has written to the Chief Executive Officers of relevant industry associations regarding the implementation of IOSCO-aligned credit spread reference benchmarks for the Secured Overnight Financing Rate (SOFR). The letters provide background information on the motivation behind the development of the USD Across-the-Curve Credit Spread Index (AXI) and its extension, the USD Financial Conditions Credit Spread Index (FXI). They note that concerns expressed by regulators in connection with other credit-sensitive proposals do not apply to AXI or FXI, highlight IBM Promontory’s opinion that the relevant IOSCO Principles for Financial Benchmarks are fully implemented and share information regarding a forthcoming multilateral industry discussion hosted by a representative of law firm Sullivan & Cromwell LLP who was also a participant in the Credit Sensitivity Group Workshops convened by the Federal Reserve Bank of New York. The letters emphasize that the introduction of AXI and FXI into U.S. commercial lending markets will enhance the resilience of the banking system and, by extension, the U.S. economy during times of economic stress.
- Letter to Rob Nichols, President and Chief Executive Officer of the American Bankers Association (ABA) is available here.
- Letter to James A. Kaitz, President and Chief Executive Officer of the Association for Financial Professionals (AFP) is available here.
- Letter to Gregory Baer, President and Chief Executive Officer of the Bank Policy Institute (BPI) is available here.
- Letter to Walt L. Lukken, President and Chief Executive Officer of the Futures Industry Association (FIA) is available here.
- Letter to Scott O’Malia, Chief Executive Officer of the International Swaps and Derivatives Association, Inc., (ISDA), is available here.
- Letter to Eric J. Pan, President and Chief Executive Officer of the Investment Company Institute (ICI) is available here.
- Letter to Sean Griffin, Chief Executive Officer and Executive Director of the Loan Syndications and Trading Association (LSTA) is available here.
- Letter to Kenneth E. Bentsen, Jr., Chief Executive Officer of the Securities Industry and Financial Markets Association (SIFMA) is available here.
- Letter to Suzanne P. Clark, President and Chief Executive Officer of the U.S. Chamber of Commerce is available here.
About SOFR Academy
SOFR Academy’s mission is to enhance the efficiency, stability, and transparency across financial markets. The Firm’s panel of advisors includes former U.S. Treasury Secretary Lawrence H. Summers and academics from Harvard University, Tsinghua University, the University of California Berkeley, New York University, the University of Oxford and London Business School, as well as experienced financial services professionals. SOFR Academy is a member of the American Economic Association (AEA), the Loan Syndications and Trading Association (LSTA), the International Swaps and Derivatives Association (ISDA), the Bankers Association for Finance and Trade (BAFT) which is a wholly owned subsidiary of the American Bankers Association (ABA), the U.S. Chamber of Commerce (USCC) and the Bretton Woods Committee (BWC). SOFR Academy’s backers include 8VC, a leading technology investment firm founded by Joe Lonsdale managing over $6 billion in committed capital, and former Goldman Sachs partner Robert Litterman who developed the Black–Litterman model together with Fischer Black in 1990. The Firm maintains an academic culture. For more information, please visit www.SOFR.org.
