Intercontinental Exchange, a leading global provider of data, technology, and market infrastructure, announced that ICE Benchmark Administration Limited (IBA) plans to launch U.S. dollar (USD) SOFR Spread-Adjusted ICE Swap Rate® for use as a benchmark in financial contracts and financial instruments by licensees on June 30, 2023.

USD SOFR Spread-Adjusted ICE Swap Rate® settings are currently published in an indicative, ‘beta’ format for testing purposes, and are determined in line with the methodology suggested by the Alternative Reference Rates Committee (ARRC) in its paper “Suggested Fallback Formula for the USD LIBOR ICE Swap Rate”.

As previously announced, IBA will cease the publication of all USD LIBOR ICE Swap Rate settings immediately following publication on June 30, 2023.

Following market feedback, IBA is planning to bring forward the launch of USD SOFR Spread-Adjusted ICE Swap Rate settings for use as a benchmark from July 3, 2023, to June 30, 2023.

The USD SOFR Spread-Adjusted ICE Swap Rate settings may be used under certain ISDA documentation designed to implement fallbacks for USD LIBOR ICE Swap Rate as suggested by the ARRC paper. Guidance from ISDA regarding this documentation and how it operates is available here.

Source: ICE