CFTC Commissioner Rostin Behnam Emphasizes "Operational Readiness" In Transition From LIBOR

Highlighting recent developments concerning the transition away from LIBOR, CFTC Commissioner Rostin Behnam emphasized the importance of "operational readiness" and urged firms to put in place fallbacks.

In a statement at the ISDA / SIFMA AMG Benchmark Strategies Forum, Mr. Behnam noted the progress made in the United States in the transition away from LIBOR. He cited:

• the Alternative Reference Rates Committee ("ARRC") developing the "Paced Transition Plan," which sets forth steps for an efficient shift to the Secured Overnight Financing Rate ("SOFR");
• the ARRC providing recommended language for USD LIBOR fallback contract language for various cash products;
• CFTC staff providing no-action relief relating to benchmark transition;