American Financial Exchange’s Statement on Silicon Valley Bank and Signature Bank – Despite Market Turbulence, Exchange Performed Flawlessly
March 14, 2023 —The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, extends its sympathy to the employees, customers and stockholders of Silicon Valley Bank (SVB) and Signature Bank in this time of market distress. They were valued members of AFX.
Despite last week’s market turbulence, the Exchange performed flawlessly and through a combination of the platform’s technology and the work and vigilance of AFX’s staff, no other banks either had exposure or defaults from these closed banks. Systemic risk was minimized or virtually eliminated. Equally important, the Exchange’s volume for Friday March 10 ($1.09 Billion) was higher than average with no increase in volatility.
AFX’s members, staff, partners and technology showed again the role and value of a rules-driven system that is self-regulated and transparent. Cboe Global Markets – AFX’s service provider – deserves a special thank you to their management and staff.
The American Financial Exchange will continue to serve its purpose during these stressful times mitigating individual and systemic risk.
Currently the AFX has 243 members across the U.S. including 197 banks (and more than 1,000 downstream correspondent banks). The AFX bank members represent over $5 trillion in bank assets (approximately 25% of total U.S. bank assets). There are also 45 non-banks comprised of insurance companies, broker-dealers, private equity firms, hedge funds, futures commission merchants, and asset managers. For more information about AFX or AMERIBOR, visit www.ameribor.net.
For more information about AFX or AMERIBOR, visit www.ameribor.net.
The American Financial Exchange (AFX) was conceived of in 2011, initiated patent application in 2012 and published “Libor is Giving Derivatives a Bad Name” in September, 2012, incorporated in 2014 and began electronic trading in 2015. AFX is a self-regulated exchange, with 243 members across the 50 U.S. states. AFX offers a suite of innovative products to improve transparency and efficiency in the current interbank loans marketplace. AFX also facilitates the determination of a market-based interest rate benchmark called the American Interbank Offered Rate (AMERIBOR®). AMERIBOR® is an interest rate benchmark that reflects the actual unsecured borrowing costs of more than 1,100 American banks and financial institutions. In addition, AFX’s AMERIBOR® is in alignment with all nineteen Principles set forth by the International Organization of Securities Commission (IOSCO) for Financial Benchmarks.