An “ " LIBOR " should coexist with SOFR , according to ICE Benchmark Administration President Timothy Smith , who suggests separate benchmarks are needed for credit and interest - rate instruments . The US Dollar ICE Bank Yield Index — like LIBOR but claims to be more accurate and harder to exploit — is yet to gain regulatory approval ; meanwhile the Fed is continues to push SOFR forward . Ex - Goldman Sachs and US Treasury , Bowler 's pursuit of a LIBOR - like benchmark stemmed from financial crisis experience . While some want to make SOFR the single standard reference for contracts , ICE Index backers cite a correlation between SOFR and the real cost of borrowing , particularly during market stress , when banks are reluctant to lend .
An “improved LIBOR" should coexist with SOFR, according to ICE Benchmark Administration President Timothy Bowler, who suggests separate benchmarks are needed for credit and interest-rate risk. The US Dollar ICE Bank Yield Index—like LIBOR but designed to be more accurate and harder to exploit—is yet to gain regulatory approval; meanwhile the Fed is continues to push SOFR adoption. Ex-Goldman Sachs and US Treasury, Bowler's pursuit of a LIBOR-like benchmark stemmed from financial crisis experience. While some want to make SOFR the single standard reference for contracts, ICE Index backers cite a mismatch between SOFR and the real cost of borrowing, particularly during market stress, when banks are reluctant to lend.