Financial regulators around the world agree the London interbank offered rate, a widely used lending benchmark that is prone to manipulation, has to go. But they have struggled to come up with a convenient replacement. Timothy Bowler, president of ICE Benchmark Administration at Intercontinental Exchange Inc., has an idea to help: Don’t...
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 .