Halister News

(Bloomberg) -- By adopting the broad GC repo index, the Alternative Reference Rate Committee chose to develop a new OIS market “essentially from scratch” that will take a “very long time, perhaps, as much as five years down the road,” Citi strategists Ruslan Bikbov and Jason Williams said in June 23 note. 

• Fed is still finalizing GC benchmark index and is expected to start publishing it in 1H 2018
• Next step in transition is for ARRC members to build their infrastructure to handle future derivatives trading based on the new rate, followed by uncleared trading of these products
  • It may take a long time to convince end users such as corporate hedgers to adopt the new benchmark

To contact the reporter on this story: Alexandra Harris in New York at aharris48@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Jenny Paris