There's a New Rival to Libor, Built by Those Who Oversee Libor
- Administrator developing new U.S. Dollar ICE Bank Yield Index
- Follows introduction of SOFR, another possible alternative
Photographer: Chris Ratcliffe/Bloomberg
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In the battle for benchmark supremacy, another potential contender has emerged to take on the London interbank offered rate.
ICE Benchmark Administration, the organization which currently oversees Libor, has outlined a possible successor to the scandal-tainted reference rate that underpins more than $200 trillion of dollar-denominated financial instruments. The unveiling of the proposed new gauge -- known as the U.S. Dollar ICE Bank Yield Index -- follows the launch last year of another alternative for dollar-denominated transactions, the Secured Overnight Financing Rate.