Refinitiv, the vendor selected by the Alternative References Rates Committee ("ARRC") to publish spread-adjusted rates for cash products, launched production-ready fallback rates that are available for immediate use on institutional cash products.
Refinitiv's fallback rates work in conjunction with the ARRC's recommended fallback language and provide market participants with fallback rates that can be clearly and easily incorporated into legacy LIBOR contracts. Refinitiv will publish two sets of these cash fallbacks - one covering institutional cash products and the other covering consumer cash products - which will be published in a variety of different versions and tenors. The firm's institutional cash fallbacks are currently active and available for use in financial contracts and nonfinancial corporate contracts as benchmarks. The firm's consumer cash fallbacks are slated to launch on January 3, 2022, and are awaiting final approval.
In a statement on the announcement, ARRC Chair Tom Wipf emphasized that the launch "gives market participants another important tool to ensure the stability of legacy contracts."