ARRC Publishes Checklist for Institutions Transitioning from Libor to SOFR

The Alternative Reference Rates Committee today issued an implementation checklist to help institutions working to transition away from the London Interbank Offered Rate to the Secured Overnight Financing Rate, the ARRC’s recommended replacement for Libor. The checklist covers 10 key areas where action is needed, including governance, risk management and operational readiness.

The ARRC noted that while the checklist is designed to provide institutions steps they can consider when transitioning, it is not intended to be a prescriptive plan for them to strictly follow. Accordingly, it does not include timelines, “as these will need to be set as part of the implementation plans for each firm and tailored to their circumstances,” the ARRC said.