The Alternative Reference Rates Committee (ARRC) has selected Refinitiv, a London Stock Exchange Group business, to publish its recommended spread adjustments and spread-adjusted rates for cash products.

Refinitiv will publish ARRC-recommended spread adjustments to Secured Overnight Financing Rate (SOFR)-based rates and spread-adjusted SOFR-based rates for cash products that transition away from USD LIBOR.

The recommended spread-adjusted fallback rates that Refinitiv will publish are for use in cash product contracts that contain ARRC-recommended fallback provisions to address instances where USD LIBOR ceases or is non-representative. In those instances, contracts that contain ARRC-recommended fallback provisions will switch to a spread-adjusted “fallback rate,” the rate that a contract indicates should be used if its base rate is not available.

Refinitiv will provide the recommended fixed spreads and spread-adjusted rates for cash products that transition away from USD LIBOR to SOFR through the ARRC’s fallback provisions. Refinitiv will make the spreads and spread-adjusted rates readily accessible on a daily basis to the general public without cost.

“I am delighted Refinitiv is making this important contribution to the market’s transition from USD LIBOR,” said David Craig, Group Head, Data & Analytics, CEO Refinitiv, LSEG. “The ARRC’s decision to choose Refinitiv builds upon our strong track-record in this area.”

The ARRC is a group of private-market participants convened by the Federal Reserve Board and Federal Reserve Bank of New York in cooperation with the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Office of Financial Research, the Office of the Comptroller of the Currency, the Commodity Futures Trading Commission, the Securities and Exchange Commission and the U.S. Treasury Department. It was initially convened in 2014 to identify risk- free alternative reference rates for USD LIBOR, identify best practices for contract robustness, and create an implementation plan with metrics of success and a timeline to support an orderly adoption.