In 2013, the International Organization of Securities Commissions (IOSCO) published Principles for Financial Benchmarks (the Principles), a set of recommended practices for administrators of financial market benchmarks. The Principles have been endorsed by the Financial Stability Board as representing best practices.
The New York Fed administers the Effective Federal Funds Rate (EFFR), the Overnight Bank Funding Rate (OBFR), the Tri-Party General Collateral Rate (TGCR), the Broad General Collateral Rate (BGCR), the Secured Overnight Financing Rate (SOFR), and the SOFR Averages and Index. The New York Fed's Audit Group has independently reviewed the organizational and operational framework used to administer these rates with respect to governance, quality of the reference rate, quality of the methodology, and accountability and has determined that they are in compliance with the Principles.
Because the New York Fed is part of the Federal Reserve System and administers the EFFR, OBFR, TGCR, BGCR, SOFR, SOFR Averages, and SOFR Index for public policy purposes, these reference rates are not within the scope of the Principles. However, as a matter of policy, the New York Fed is committed to administering the rates in a manner consistent with the Principles.
Annually, the New York Fed will issue a Statement of Compliance regarding its reference rates to increase transparency surrounding the administration of the rates in a manner consistent with the Principles.