The ARRC released a paper formally stating its selections and recommendations as the "relevant governmental body" as they apply to the contractual provisions included in the ARRC's recommended hardwired fallback language. In particular, the hardwired language requires verification by the ARRC acting as a "relevant governmental body" of certain recommendations made under it, including: 1) the ARRC's selection or recommendation of a forward-looking SOFR term rate as a replacement for LIBOR for a given cash product; 2) the ARRC's recommendations of spread adjustments; and 3) the ARRC's recommendations of replacement indexes for use in consumer LIBOR products. The ARRC notes that its recommendations match the Board-selected benchmark replacements specified in the Federal Reserve Board's rule implementing the Adjustable Interest Rate (LIBOR) Act. Summary tables of the ARRC's selections and recommendations for hardwired USD LIBOR fallbacks by product type can be found in Appendix B of the ARRC's statement.

The ARRC released recommendations for contracts linked to USD LIBOR ICE Swap Rates (USD LIBOR ISR). The recommendations recognize that these contracts are not covered by federal LIBOR legislation and that counterparties may need to take proactive steps to address the end of the USD LIBOR ISR. To avoid disruption to these contracts, the ARRC developed a set of recommendations including a suggested fallback formula that can be used for USD LIBOR ISR fixings after 3-month USD LIBOR has been discontinued or becomes non-representative.

The ARRC as "Relevant Recommending Body" under New York and Alabama State LIBOR Legislation (State LIBOR Legislation), released a statement selecting and recommending forms of the SOFR, along with associated spread adjustments and conforming changes, to replace references to 1-week and 2-month U.S. dollar (USD) LIBOR in certain contracts affected by the State LIBOR Legislation. More information on the New York State legislation which informed these recommendations can be found in the FAQs also released today.

The ARRC released a summary of its decisions to date regarding its recommended spread-adjusted fallbacks for contracts referencing USD LIBOR. This document provides a singular reference point for market participants to understand the ARRC's current recommendations in relation to its fallback language and to state legislation that references ARRC recommended fallbacks.

The ARRC released a supplemental update to its recommended contractual fallback language for USD LIBOR securitizations. The supplemental update amends the definition of a Benchmark Trigger Event within the recommended fallback language to acknowledge its occurrence as a result of the March 2021 IBA/FCA announcements.

The ARRC released supplemental versions of its recommendation of hardwired fallback language for USD LIBOR denominated syndicated and bilateral business loans. The supplemental recommendation for business loans sets out abridged versions of the 2020 fallback language for syndicated business loans and bilateral business loans incorporating the certainty on fallback timing and economics afforded by the March 5th announcements. These simplified versions of the ARRC's hardwired business loans fallback reflect the ARRC's continued efforts to support a seamless transition away from USD LIBOR and encourage the broad voluntary adoption of the ARRC's recommended alternative reference rate, SOFR.

On October 29, the ARRC updated its FAQs to its Request for Proposals (RFP) that was published in September 2020 seeking a potential administrator to publish forward-looking SOFR term rates. This follows the publication of the ARRC's 2020 Objectives, which aimed to establish an RFP process to select a recommended administrator of forward-looking term SOFR rates, to be published in the first half 2021 if liquidity in SOFR derivatives markets has developed sufficiently.

Submitting Responses to the RFP
Questions and responses to the RFP should be sent to the ARRC Secretariat at arrc@ny.frb.org by October 31, 2020. Please provide only one response per institution, and please attach your responses in a PDF document with "Forward-Looking Term Rates RFP Response" clearly indicated in the subject line of your email.

The ARRC will evaluate responses and will require selected firms to present their proposals. Following an ARRC selection, the ARRC will publish the name of the chosen recommended administrator. The recommended administrator must be prepared to begin publication of the forward-looking term rates by June 30, 2021.

On October 9, the ARRC released FAQs to its Request for Proposals (RFP) that was published in September 2020 seeking one or more firms to publish daily indicative spreads and, after a trigger event has occurred, static spreads and spread-adjusted fallback rates for cash products that transition away from USD LIBOR. These spread-adjusted fallback rates will be based on SOFR. They are designed for use in legacy contracts with the ARRC's recommended hardwired fallback language, and other instances where spread-adjusted replacement rates are needed.

Submitting Responses to the RFP
Questions and responses to the RFP should be sent to the ARRC Secretariat at arrc@ny.frb.org by October 16, 2020. Please provide only one response per institution, and please attach your responses in a PDF document with "Spread Adjustment RFP Response" clearly indicated in the subject line of your email.

The ARRC will evaluate responses and will require selected firms to present their proposals. Following an ARRC selection, the ARRC will publish the name(s) of the chosen administrator(s).

The ARRC released updated recommended contractual fallback language for new originations of USD LIBOR denominated bilateral business loans. The updated bilateral business loan fallback language adjusts the “Hardwired Approach” and the “Hedged Loan Approach” of the recommended language that was initially released in May 2019. That language followed an associated consultation and webcast (comments received). The ARRC also released FAQs for Business Loans Hardwired Fallback Language, which may be updated from time to time to reflect developments.

• Consultation (Released for comment on December 7, 2018)
• Webcast about consultation
• Comments Received (Comment Period Ended on February 5, 2019)
• Updated and Current Final Recommended Language (August 27, 2020)
• FAQs for Business Loans Hardwired Fallback Language (August 27, 2020)
• Archived Recommended Language (May 30, 2019)

The ARRC released a final recommendation coming out of its consultation (comments received) and supplemental consultation (comments received) on spread adjustment methodologies for cash products referencing USD LIBOR. These spread adjustments are intended for use in USD LIBOR contracts that have incorporated the ARRC’s recommended hardwired fallback language, or for legacy USD LIBOR contracts where a spread-adjusted SOFR can be selected as a fallback.

• Consultation (Released for comment on January 21, 2020)
• Comments Received (Comment Period Ended on March 25, 2020)
• Supplemental Consultation (released for comment on May 6, 2020)
• Comments Received (Comment Period Ended on June 15)
• Final Recommendation

The ARRC released final recommended contractual fallback language for USD LIBOR denominated floating rate notes. These provisions are for market participants’ voluntary use in new contracts that reference LIBOR and were developed with the goal of reducing the risk of serious market disruption in the event that LIBOR is no longer usable. They were developed following an associated consultation and webcast (comments received).

• Consultation (Released for comment on September 24, 2018)
• Webcast about consultation
• Comments Received (Comment Period Ended on November 26, 2018)
• Final Recommended Language (April 25, 2019)

The ARRC released updated recommended contractual fallback language for USD LIBOR denominated syndicated loans. The hardwired fallback language was updated to recommend the use of simple daily SOFR in arrears in the second step of the waterfall and include a more permissive early opt-in trigger. The ARRC initially released recommended fallback language for syndicated loans in April 2019. That language followed an associated consultation and webcast (comments received).

• Consultation (Released for comment on September 24, 2018)
• Webcast about consultation
• Comments Received (Comment Period Ended on November 26, 2018)
• Updated and Current Final Recommended Language (June 30, 2020)
• Archived Recommended Language (April 25, 2019)

The ARRC released recommended contractual fallback language for new USD denominated closed-end, residential adjustable-rate mortgages (ARMs). These provisions are for market participants’ voluntary use in new residential ARMs that reference USD LIBOR, and were developed with the goal of reducing the risk of serious market disruption in the event that LIBOR is no longer available. The final recommended language follows an associated consultation on the topic (comments received).

• Consultation (Released for comment on July 12, 2019)
• Comments Received (Comment Period Ended on September 24, 2019)
• Final Recommended Language (November 15, 2019)

The ARRC released its final recommended contractual fallback language for new variable rate private student loans. This language was developed for new contracts that reference USD LIBOR to minimize risk and market disruption in the event that LIBOR is no longer usable. The final recommended language follows an associated consultation on the topic (comments received).

• Consultation (Released for comment on March 27, 2020)
• Comments Received (Comment Period Ended on June 15, 2020)
• Final Recommended Language (June 30, 2020)

The ARRC issued a supplemental consultation seeking further views on certain technical issues related to spread adjustment methodologies for cash products referencing USD LIBOR. This consultation builds on the feedback the ARRC has received on its original consultation on potential spread adjustment methodologies issued in January 2020 and includes a summary of feedback received to date on the initial consultation.

Submitting Feedback About This Consultation
The ARRC welcomes responses to the supplemental consultation from the widest possible range of stakeholders. The release of the consultation marks the start of a public comment period during which the ARRC intends to work closely with stakeholders to solicit and incorporate their input. Following this comment period, the ARRC will release a more detailed final recommendation of the spread adjustment methodology for cash products.

Market participants may submit responses to the consultation questions by email to the ARRC Secretariat (arrc@ny.frb.org) no later than June 8, 2020. Please provide only one response per institution, and please attach your responses in a PDF document with "Supplemental Consultation Response" clearly indicated in the subject line of your email. Comments will be posted on the ARRC's website as they are received without alternation, expect when necessary for technical reasons, and with attribution, unless respondents request anonymity. If your institution is requesting anonymity, please clearly indicate this in the body of your email and please ensure that the PDF document you submit is anonymized.

Questions regarding the consultation should be sent to the ARRC Secretariat (arrc@ny.frb.org) and will not be posted for attribution.

The ARRC released a summary of its sets of recommended fallback language issued as-of November 2019 for various cash products.

The ARRC released final recommended contractual fallback language for USD LIBOR denominated securitizations. These provisions are for market participants’ voluntary use in new contracts that reference LIBOR and were developed with the goal of reducing the risk of serious market disruption in the event that LIBOR is no longer usable. They were developed following an associated consultation and webcast (comments received).

• Consultation (Released for comment on December 7, 2018)
• Webcast about consultation
• Comments Received (Comment Period Ended on February 5, 2019)
• Final Recommended Language (April 25, 2019)

The ARRC released guiding principles for the development of fallback language for new financial contracts for cash products to ensure they will continue to be effective in the event that USD LIBOR ceases to be produced. These principles mark a key milestone in meeting the ARRC’s mandate to help address risks in contract language and minimize disruptions associated with a possible end to LIBOR.