8.2.21
New findings show the use of SOFR within the swaps market rose to 20% of transactions from less than 4% in the first two trading days after the Commodity Futures Trading Commission’s (CFTC) launched its “SOFR First” campaign for interbank markets on July 26. The aim of the SOFR First campaign is to promote trading in SOFR in an effort for market participants to decrease reliance on U.S. Dollar LIBOR. The latest trading activity signals momentum is growing in the shift towards SOFR as banks continue to face pressure from regulators to reinforce their transition plans towards alternative benchmark rates.