Monticello attended the Alternative Reference Rates Committee (ARRC) Roundtable on June 3, 2019. With the cessation of LIBOR on the horizon, there are only two and half years remaining to safely execute one of the largest transitions within financial markets to be seen in a generation. The resounding message from the Fed and the ARRC at Monday’s conference was for market participants to not wait and start preparing for a cessation of LIBOR now. In 2014, regulators began to communicate the risk that LIBOR will become unstable, eventually discontinue, and to begin planning a transition to a new benchmark. Since guaranteed LIBOR stability runs out on December 31, 2021, the time remaining for market participants to plan and execute the transition away from LIBOR and build the needed liquidity in the market for SOFR is critical.
The ARRC is hosting a vendor workshop on June 28 where the Operations/Infrastructure Working Group will interact with key vendors who will be critical for the adoption and support of SOFR. Monticello will be there to participate and add our expertise for how to successfully plan, execute and govern a LIBOR transition program for banks, end-users, and other key market participants.