The Federal Reserve Bank of New York (New York Fed) today updated its Statement of Compliance with the IOSCO Principles for Financial Benchmarks (the Principles).
The New York Fed’s Audit Group independently reviewed the organizational and operational framework used to administer the Effective Federal Funds Rate (“EFFR”), Overnight Bank Funding Rate (“OBFR”), Tri-Party General Collateral Rate (“TGCR”), Broad General Collateral Rate (“BGCR”), Secured Overnight Financing Rate (“SOFR”), SOFR Averages, and SOFR Index with respect to governance, quality of the benchmark, quality of the methodology, and accountability. The Audit Group determined that these reference rates are in compliance with the Principles.
In 2013, IOSCO published the Principles, which were then 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 maintain transparency surrounding the administration of these benchmarks in a manner consistent with the Principles. The New York Fed will continue to assess the compliance of all of its reference rates with the Principles on an annual basis and issue a Statement of Compliance accordingly.
