ICE Benchmark Administration Launches ICE Term SOFR Beta Benchmark Rates | News
LONDON–(BUSINESS WIRE)–February 10, 2022–
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of market data, technology and infrastructure, today announced that ICE Benchmark Administration Limited (IBA) has launched an indicative beta of its ICE Term SOFR reference rates.
Beta ICE Term SOFR (“ICE Term SOFR”) benchmark rates are designed to measure expected (i.e., forward-looking) SOFR rates over periods of one, three, six and 12 months. The rates are based on a waterfall methodology, which uses eligible prices and volumes for specific interest rate derivatives linked to SOFR as input data.
The Waterfall currently uses dealer-to-client prices and volumes for eligible SOFR-linked interest rate swaps available on Tradeweb’s institutional platform to generate ICE Term SOFR beta rates. If there is insufficient qualifying dealer-customer data, ICE beta futures SOFR rates are calculated using ICE SOFR linked futures data.
As market liquidity increases, IBA also plans to use tradable bid and ask prices and eligible SOFR-linked interest rate swap volumes available on the central limit order books of the regulated electronic trading platforms to generate SOFR Beta ICE Term rates.
“We are excited to support the development and adoption of alternative pricing by launching ICE Term SOFR beta pricing,” said Tim Bowler, president of ICE Benchmark Administration. “We’ve heard feedback from many businesses, borrowers and lenders that they appreciate having forward-looking forward rates to provide certainty when calculating their interest charges and other contractual payments up front. IBA continues to work on the development and provision of tools to support financial markets in the benchmark transition.
Beta ICE Term SOFR rates are published daily on IBA’s ICE Term Rates webpage, which provides a comprehensive overview of IBA’s risk-free rate solutions and is designed to assist stakeholders in their transition to benchmarks alternatives. Beta ICE Term SOFR rates are published alongside Beta Tradeweb ICE CMT indicative rates, which are designed to provide a daily snapshot of US Treasury yields for standard maturities, based on trades or quotes of US Treasury securities on the Tradeweb institutional platform.
IBA publishes Beta ICE Term SOFR pricing for an initial testing period for informational and illustrative purposes only, to allow recipients to evaluate settings and provide feedback. Beta rates are not intended for, and IBA expressly prohibits their use, for any other purpose, including as a benchmark, index or benchmark in financial instruments, financial contracts or investment funds. IBA will announce in due course when the ICE Term SOFR rates will be available for use in financial instruments.
Comments on Beta ICE Term SOFR tariffs should be sent to [email protected]
About ICE Benchmark Administration
ICE Benchmark Administration is authorized and regulated by the Financial Conduct Authority for the regulated activity of administering a benchmark, and is authorized as a benchmark administrator under the UK Benchmarks Regulations. IBA reserves all rights to the ICE Term SOFR methodology and Beta ICE Term SOFR parameters. ICE Benchmark Administration is a registered trademark of IBA and/or its affiliates. IBA is not affiliated with the New York Fed. The New York Fed does not endorse, endorse or recommend any product or service offered by IBA.
About intercontinental exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that provide our clients with access to critical workflow tools that increase transparency and operational efficiency. We operate exchanges, including the New York Stock Exchange, and clearinghouses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide insights, analytics and platforms that help our clients take advantage of opportunities and operate more effectively. At ICE Mortgage Technology, we are transforming and digitizing the US residential mortgage process, from consumer engagement to loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Here you will find information regarding other trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates. Key information documents for certain products covered by the EU Regulation on packaged retail and insurance-based investment products can be accessed on the website of the relevant exchange under the heading “Information Documents keys (KIDS)”.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements, see ICE’s filings with the Securities and Exchange Commission (SEC), including, but not Limit thereto, the risk factors in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 3, 2022.
Source: Intercontinental Exchange
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220210005544/en/
CONTACT: ECI Media Contact
+44 7951 057351
[email protected] ICE Investor Contact
Mary Caroline O’Neal
KEYWORD: UNITED KINGDOM EUROPE
KEYWORD INDUSTRY: PROFESSIONAL SERVICES DATA MANAGEMENT TECHNOLOGY FINANCE SOFTWARE BANKING
SOURCE: Intercontinental Exchange
Copyright BusinessWire 2022.
PUBLISHED: 02/10/2022 08:00 AM/DISC: 02/10/2022 08:02 AM
Copyright BusinessWire 2022.