LIBOR (USD) Transition

DTCC is helping to facilitate the centralized communication of the LIBOR replacement rate to its clients and the investor community in an automated fashion.

• About

  The London Inter-Bank Offered Rate index will be retired in June 2023. Securities that are currently using LIBOR (USD) to calculate their interest rates will need to choose and communicate a replacement rate to the investor community ahead of the retirement date.

  By working with the FRBNY Alternative Reference Rate Committee (ARRC) and other various industry organizations, DTCC has been able to compile requirements to create a centralized process to disseminate benchmark replacement details through several different types of output, including the LENS repository directly to the end investor.

  The process has been designed to collect, streamline, and standardize communication in a timely fashion to the industry to mitigate various risks and to ensure a smooth transition from the LIBOR index.

• How it Works

  By centralizing the communication of the replacement rate for LIBOR; issuers, their associated trustees, agents, and the investor community alike can use the new DTCC process to be prepared well in advance of the LIBOR retirement date.

  The new solution will allow for the fielding of descriptive reference data for efficient, machine-to-machine communication instead of individuals or teams assigned to review large, complex legal documents to determine these details.

• Who Can Use the Service

  Issuers, their trustees, and agents will be able to input descriptive benchmark replacement rates directly into DTCC’s system. Users of LENS will be able to select and view this information as a new notice type. In addition, Buy-side, sell side and data providers will be able subscribe to and consume the automated output by contacting DTCC Data Services.

• Benefits

  By centralizing the communication of the replacement rate for LIBOR, investors in these securities can be confident that they will understand the interest rate calculation prior to the retirement of the LIBOR index.

  Some of the many benefits include:

  • Safe, secure point of entry: The online web form will be protected through several security protocols so that you can be confident that the information being communicated is sound
  • Single User Interface (UI): Communicate the LIBOR index replacement for your all securities in one place through a flexible web UI
  • Designed with the industry: The UI and the fields found within along with the consumable output have all been vetted and agreed upon through various industry working group sessions
  • Standardized data to communicate: The format of the fields and how they will be used have all been agreed to and are meant to be communicated machine-to-machine
  • Choose what you would like to submit: You can upload multiple documents including PDFs; data in bulk using Excel workbooks or Comma Separated Value (CSV) files or you can use a preloaded form to seamlessly communicate the descriptive information
  • Flexible output available: Consumers of this information can choose which format they would like to subscribe to receive this data using a file, API, or the LENS system
  • Future integrations possible: The convenient, flexible, and straight through nature of the UI and associated outputs can be built for other processes to help streamline the investor communication process

• For More Information

  To request additional information, please click here.