Structured Finance Association Partners with Market Leaders and Industry Groups in Urging New York State to Consider ARRC LIBOR Proposal
In a letter to New York Governor Andrew Cuomo, Senate Majority Leader Andrea Stewart-Cousins, and Assembly Speaker Carl Heastie, the Structured Finance Association (SFA) joined market leaders and industry groups in urging the state to consider a legislative proposal from the Alternative Reference Rates Committee (ARRC) that would provide clarity and promote financial stability as market participants prepare for the London Inter-Bank Offered Rate (LIBOR) to be discontinued. LIBOR is the benchmark index currently used, for example, to determine the interest rate that consumers pay on some credit cards, home equity lines of credit, reverse mortgages, and private student loans.
“In the discussion around the transition away from LIBOR, New York is the center of the financial universe, with a substantial number of financial contracts governed by New York law,” said Michael Bright, CEO of the Structured Finance Association. “The state has a critical role to play in leading this transition, and we are hopeful it will take the steps necessary to provide clarity and promote financial stability. The ARRC’s proposal has strong market support and outlines a roadmap to an orderly transition. We encourage swift consideration.”