- 28 May 2020
- By CME Group
- Topics: Economic Events
As the €STR and SOFR discounting transitions approach, we’ve created three quick educational videos to answer common questions and discuss how CME Group can help you smoothly navigate these events:
- Introduction and Overview: Explore the increasing market adoption of SOFR and review important points about the upcoming €STR & SOFR discounting transitions.
- Operational Processes and Testing: Break down the specifics behind the transition, get guidance on developing a strategy for handling cash adjustments and basis swaps, and explore how to prepare for the transition.
- SOFR Auction Process: Review the re-hedging exercise and get a technical walkthrough of the auction process, including CME Group’s approach and safeguards.
Download the full operational deck for the SOFR & €STR discounting transition.
Video topics include:
- Growth of the SOFR market, as demonstrated by record issuance and use of CME Group cleared derivative products
- How the industry, with Alternative Reference Rate Committee (ARRC) guidance, is working to develop a liquid SOFR market by end of 2021
- To facilitate a smooth transition to €STR and SOFR, how euro and US dollar interest rate swap products will undergo a price alignment and discounting transition in 2020
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