NY Fed paper warns of systemic risks from SOFR credit lines
Regulatory stress tests may need to be updated to account for the acute drawdown risks faced by banks that offer committed credit facilities linked to the secured overnight financing rate, or SOFR, according to a recent staff paper from the Federal Reserve Bank of New York. The new study, led by Stanford University’s Darrell Duffie […]
CME Group Hits Record 7.56M Single-Day SOFR Futures and Options Contracts
The single-day volume of Secured Overnight Financing Rate (SOFR) futures and options contracts traded on the Chicago Mercantile Exchange (CME) hit a record 7.56 million contracts on January 12. This came with a record open interest rate of 35.7 million contracts on the same day, CME Group disclosed in a press statement. AloGatewayis a Global […]