trending Market Intelligence /marketintelligence/en/news-insights/trending/4aBtsTJJxQn3NJ8kO35PaA2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Fed finalizes efforts to pick 3 new reference rates

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Fed finalizes efforts to pick 3 new reference rates

The Federal Reserve Board finalized its plans to pick three new reference rates that it says would serve as a more transparent alternative to the long-established London Interbank Offered Rate, or LIBOR.

The Fed, which announced the three reference rates earlier this year, wrapped up its period for public comments on the proposal and expects to begin publishing the rates in the second quarter of 2018. The rates would be based off overnight repurchase agreement, or repo, transactions secured by Treasurys.

In a slight shift from its original proposal, the Fed said it would publish the rates by 8 a.m. instead of 8:30 a.m., partly because the later release time would overlap with the announcement of some U.S. economic indicators and would be too late for some foreign markets. The board and the New York Fed will consider publishing the rates earlier, but the Fed said doing so may be too difficult to manage operationally. The New York Fed and the U.S. Office of Financial Research will work together prepare the rates.

The announcement follows efforts from U.S. policymakers to find alternatives to LIBOR, which faced claims of being rigged years ago. Officials on the Alternative Reference Rate Committee had settled on a recommended alternative: the Secured Overnight Financing Rate, or SOFR.

The Fed will also publish the Triparty General Collateral Rate, or TGCR, and the Broad General Collateral Rate, or BGCR.

"The three interest rates will be constructed to reflect the cost of short-term secured borrowing in highly liquid and robust markets," the Fed said in a news release. "Because these rates are based on transactions secured by Treasury securities, they are essentially risk-free rates, providing a valuable benchmark for market participants to use in financial transactions."