Editing Libor (section)

=== Alternatives for the USD LIBOR ===

==== Alternative Reference Rates Committee ====
In 2014, the [[Federal Reserve Board of Governors|U.S. Federal Reserve Board]] and the [[Federal Reserve Bank of New York]] announced the creation of the Alternative Rates Reference Committee (ARRC) to assess viable alternatives to the LIBOR.<ref>{{Cite web|title=Alternative Rates Reference Committee|url=https://www.newyorkfed.org/arrc|access-date=May 14, 2018}}</ref>

In 2016, the ARRC released its first report on the possible indices that could serve as a replacement to the LIBOR.

On March 7, 2018 the ARRC announced that the committee had been reconstituted and the following groups were participating.<ref>{{Cite web|title=Membership for ARRC Broadened to Facilitate LIBOR Transition|url=https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2018/ARRC-March-7-2018-press-release.pdf|access-date=June 2, 2018|website=New York Fed}}</ref>

The ARRC would comprise the following institutions:

* [[AXA]]
* [[Bank of America]]
* [[BlackRock]]
* [[Citigroup]]
* [[CME Group]]
* [[Deutsche Bank]]
* [[Federal National Mortgage Association]]
* [[Federal Home Loan Mortgage Corporation]]
* [[GE Capital]]
* [[Goldman Sachs]]
* [[Government Finance Officers Association]]
* [[HSBC]]
* [[Intercontinental Exchange]]
* [[International Swaps and Derivatives Association]]
* [[JP Morgan Chase & Co.]]
* [[LCH Clearnet]]
* [[MetLife]]
* [[Morgan Stanley]]
* [[National Association of Corporate Treasurers]]
* [[Pacific Investment Management Company]]
* [[Toronto-Dominion Bank|TD Bank]]
* The [[Federal Home Loan Bank]] of New York
* The [[Independent Community Bankers of America]]
* The [[Loan Syndications and Trading Association]]
* The [[Securities Industry and Financial Markets Association]]
* [[Wells Fargo]]
* [[World Bank Group]]

In addition, the following agencies would serve as [[ex officio]] members of the ARRC:

* [[Board of Governors of the Federal Reserve System]]
* [[Consumer Financial Protection Bureau]]
* [[Federal Deposit Insurance Corporation]]
* [[Federal Housing Finance Agency]]
* [[Federal Reserve Bank of New York]]
* [[Office of Financial Research]]
* [[Office of the Comptroller of the Currency]]
* [[U.S. Commodity Futures Trading Commission]]
* [[U.S. Securities and Exchange Commission]]
* [[U.S. Treasury Department]]

==== Secured Overnight Financing Rate ====
In June 2017, the ARRC announced a broad Treasury repo financing rate, [[SOFR]], as its recommended alternative to the USD LIBOR. In its justification for this choice the ARRC said:

{{Blockquote|SOFR is a fully transactions based rate that will have the widest coverage of any Treasury repo rate available and it will be published on a daily basis by the Federal Reserve Bank of New York beginning April 3, 2018. Because of its range of coverage, SOFR is a good representation of the general funding conditions of the overnight Treasury repo market. As such it will reflect an economic cost of lending and borrowing relevant to a wide array of market participants active in these markets, including broker dealers, money market funds, asset managers, insurance companies, securities lenders and pension funds.<ref>{{Cite web|url=https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2018/ARRC-second-report-press-release|title=ARRC Releases Second Report on Transition from LIBOR|access-date=14 May 2018}}</ref>}}

==== Across-the-Curve Credit Spread Indices (AXI) ====
The Across-the-Curve Credit Spread Index (AXI) is a benchmark credit spread that captures the recent cost of wholesale, unsecured debt funding for publicly listed US bank holding companies and commercial banks. It can be used in conjunction with [[SOFR]] to form a robust credit-sensitive interest rate benchmark for bank lending and risk management. AXI is the weighted average of credit spreads for unsecured debt instruments with maturities ranging from overnight to five years, using weights that reflect both transaction and issuance volumes. The primary underlying input data source is the [[Financial Industry Regulatory Authority]]'s [[Trade reporting and compliance engine|Trade Reporting and Compliance Engine]] (TRACE), which is a mandatory post-trade reporting facility. This long-term bond component is supplemented by a short-term component using data from the [[Depository Trust & Clearing Corporation]] (DTCC). The Financial Conditions Credit Spread Index (FXI) follows the same methodology as AXI, but the underlying transactions are expanded beyond banks to include all financial institutions, as well as corporate funding transactions. AXI and FXI were first conceived by Antje Berndt, [[Darrell Duffie]], and Yichao Zhu,<ref>{{Cite web|url=https://cbe.anu.edu.au/about/staff-directory/dr-yichao-zhu|title=Dr Yichao Zhu &#124; College of Business and Economics|website=cbe.anu.edu.au}}</ref><ref>{{Cite journal|title=Across-the-Curve Credit Spread Indices|first1=Antje|last1=Berndt|first2=Darrell|last2=Duffie|first3=Yichao|last3=Zhu|date=1 August 2023|journal=Financial Markets, Institutions & Instruments|volume=32|issue=3|pages=115–130|doi=10.1111/fmii.12172|doi-access=free}}</ref> and were operationalized by [[SOFR Academy]], Inc.<ref>{{Cite web|url=https://sofracademy.com/axi/|title=Across-the-Curve Credit Spread Indices (AXI)}}</ref> The US-dollar benchmark spreads were launched in 2022<ref>{{Cite press release|url=https://www.prnewswire.com/news-releases/invesco-indexing-and-sofr-academy-announce-official-launch-of-the-invesco-usd-across-the-curve-credit-spread-indices-axi-301591965.html|title=Invesco Indexing and SOFR Academy announce official launch of the Invesco USD Across-the-Curve Credit Spread Indices (AXI)|author=Invesco Ltd; SOFR Academy|website=www.prnewswire.com}}</ref> and are published each business day by authorized benchmark administrator Invesco Indexing LLC,<ref>{{Cite web|url=https://www.invescosofracademyaxi.com/|title=Invesco / SOFR Academy USD Across-the-Curve Credit Spread Indexes (AXI)|website=www.invescosofracademyaxi.com}}</ref> an independent index provider owned by global asset management firm [[Invesco]]. AXI and FXI are accessible via [[Bloomberg LP|Bloomberg]] and [[Refinitiv]] / [[London Stock Exchange Group|LSEG]].<ref>{{Cite web|url=https://www.businesswire.com/news/home/20220901005579/en/Invesco-USD-Across-the-Curve-Credit-Spread-Indices-AXI-now-accessible-via-Bloomberg-and-Refinitiv|title=Invesco USD Across-the-Curve Credit Spread Indices (AXI) now accessible via Bloomberg and Refinitiv|date=1 September 2022|website=www.businesswire.com}}</ref>

==== Ameribor ====
Ameribor is a benchmark interest rate created by the American Financial Exchange. Ameribor reflects the actual borrowing costs of thousands of small, medium, and regional banks across America, but it is also useful for larger banks and financial institutions that do business with these banks, as well as small and middle market companies. Ameribor has traded more than $550 billion (~${{Format price|{{Inflation|index=US-GDP|value=550000000000|start_year=2015}}}} in {{Inflation/year|US-GDP}}) since inception in 2015. In addition, the AFX launched Ameribor futures on August 16, 2019.<ref>{{cite news|date=2018-09-27|title=A scramble to replace LIBOR is under way|url=https://www.economist.com/finance-and-economics/2018/09/29/a-scramble-to-replace-libor-is-under-way|access-date=2018-10-31|newspaper=The Economist}}</ref><ref>{{cite web|title=American Financial Exchange (AFX)|url=http://www.marketswiki.com/wiki/American_Financial_Exchange_(AFX)|access-date=2018-10-31|website=MarketsWiki}}</ref>

==== U.S. Dollar ICE Bank Yield Index ====
The [[U.S. Dollar ICE Bank Yield Index]] is an index proposed by Intercontinental Exchange Benchmark Administration (IBA) in January 2019 to measure the yields at which investors are willing to lend U.S. dollar funds to large, internationally active banks on a wholesale, unsecured basis over one-month, three-month and six-month periods.<ref name="Bloomberg">{{cite news|author=Alex Harris|date=2019-01-25|title=There's a New Rival to Libor, Built by Those Who Oversee Libor|publisher=Bloomberg|url=https://www.bloomberg.com/news/articles/2019-01-24/there-s-a-new-rival-to-libor-built-by-those-who-oversee-libor}}</ref> Its usage is intended to be similar to how Libor is currently used.<ref name="IndexDefinition">{{cite news|author=ICE Benchmark Administration|date=2019-01-25|title=U.S. Dollar ICE Bank Yield Index|url=https://www.theice.com/publicdocs/futures/Bank_Yield_Index_WP.pdf}}</ref>