Webinar aims to explain to customers how demise of LIBOR – and adoption of new reference rate — will affect investments

A webinar is planned May 24 about how banks and other market participants can tell their customers about how the elimination of the LIBOR reference rate at the end of the June will affect their investments, the group sponsoring a preeminent alternative to that rate said Friday.

The Alternative Reference Rates Committee (ARRC) said it would hold the webinar – titled “Using the DTCC LIBOR Replacement Index Communication Tool to Support the Transition Away from USD LIBOR” – from 1-2:15 p.m. ET. The event is open to the public. It will also be recorded for those who cannot view the event live.

On June 30, LIBOR (the London Interbank Overnight Rate) will be eliminated, meaning contracts still using the reference rate will have to find a new one for the ongoing contracts. LIBOR was eliminated as an option for new contracts on Jan. 1, 2022.

ARRC, a group sponsored by the Federal Reserve, developed the Secured Overnight Financing Rate (SOFR), which has been widely adopted as a LIBOR replacement, although other reference rates may be used.

The DTCC LIBOR Replacement Index Communication Tool, according to the Federal Reserve Bank of New York, is a mechanism to communicate information about that transition for any security identified by a CUSIP (the code that describes a security and the who issued it) directly to the “legal notice system” (LENS) developed by the of the Depository Trust & Clearing Corporation (DTCC). LENS, according to DTCC, is a repository of notices designed to report organizational actions that affect securities issues from issuers, agents and trustees, as well as via an automated data feed that supports machine-to-machine capture of standardized reference data.

The webinar includes a discussion about how the DTCC communication tool works, along with a demonstration.

Registration for the event is now open at the link below.

Using the DTCC LIBOR Replacement Index Communication Tool to Support the Transition Away from USD LIBOR