By centralizing the communication of the replacement rate for LIBOR; issuers, their associated trustees, agents, and the investor community alike can use the new DTCC process to be prepared well in advance of the LIBOR retirement date. The new solution will allow for the fielding of descriptive reference data for efficient, machine-to-machine communication instead of individuals or teams assigned to review large, complex legal documents to determine these details.
How it Works
DTCC’s LIBOR Benchmark Replacement Index solution is comprised of two-parts:
- Input to DTC: DTCC has created the LIBOR Replacement Index Communication Tool to collect descriptive replacement rate details from issuers, agents, trustees and other determining persons. The tool, can be accessed on dtcc.com. Users can upload Excel or CSV files representing rate change details on multiple securities as well as accompanying documentation in a secure and efficient manner. The LIBOR Replacement Index Communication Tool User Guide includes step by step procedures to input or upload your selections
- Output from DTC: There will be two mediums that clients can consume in order to review and update their security reference data files and notify their clients:
- Machine-readable file for automated consumption of the descriptive rate data is available. Click the pdf AutoRoute File Specification (340 KB) Quick Link (top right). This is an intraday file available via FTP/NDM that will allow subscribers the ability to receive the fielded data systematically
- Enhancements to DTCC’s Legal Notice System (LENS). There will be a new notice type in LENS that has been created specifically for LIBOR benchmark replacement details. Existing and future subscribers will access descriptive replacement rate details on an easy-to-read PDF with the accompanying documentation available too.