The New York Fed today updated its Statement of Compliance with the IOSCO Principles for Financial Benchmarks (the Principles) to cover the Secured Overnight Financing Rate (SOFR), Broad General Collateral Rate (BGCR) and Tri-Party General Collateral Rate (TGCR). The statement was originally published on January 18, 2018, covering the effective federal funds rate (EFFR) and the overnight bank funding rate (OBFR). The New York Fed’s Audit Group independently reviewed the organizational and operational framework used to administer the SOFR, BGCR and TGCR with respect to governance, quality of the benchmark, quality of the methodology, and accountability and determined that these reference rates are also in compliance with the Principles.
In 2013, IOSCO published the Principles, which have been endorsed by the Financial Stability Board as being standards of best practice for benchmark administration. The purpose of releasing an updated version of this statement is to increase transparency surrounding the administration of these benchmarks in a manner consistent with the Principles. The New York Fed will assess the compliance of all of its reference rates with the Principles on an annual basis and issue a Statement of Compliance accordingly.
