AFX IOSCO Holding Statement
On July 3, 2023, the Madrid, Spain based Board of the International Organization of Securities Commissions (IOSCO) announced the results of its Review of Alternatives to USD LIBOR. In its review of two credit-sensitive rates (CSRs) —one of which was AMERIBOR—and two Term SOFR rates, IOSCO determined (based on administrator’s self-assessments) that all four rates […]
With LIBOR’s Long-Awaited Sunset, the Future of Interest Rate Benchmarking Must Be Defined by Choice
With LIBOR’s Long-Awaited Sunset, the Future of Interest Rate Benchmarking Must Be Defined by Choice By John Shay, CEO, American Financial Exchange As of June 30, 2023, a chapter in financial markets history has come to an end. The London Interbank Offered Rate (LIBOR), once a crucial benchmark for the overnight lending market, has been […]
UK regulator makes ‘final call’ to switch off Libor
LONDON, May 31 (Reuters) – Markets participants have a month to stop using Libor, the tarnished interest rate banks were fined for trying to rig, Britain’s Financial Conduct Authority (FCA) said on Wednesday. The London Interbank Offered Rate (Libor) reflected the cost of lending between banks, using quotes from panels of banks in 35 variants […]
LCBA Community Bank Public Opinion and Local Impact
American Financial Exchange Appoints Veteran Financial Services Executive John Shay as CEO
American Financial Exchange Appoints Veteran Financial Services Executive John Shay as CEO Chicago – May 2, 2023 – The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, today announced that the exchange has appointed veteran financial services executive John Shay as CEO, effective immediately. AFX […]
AMERIBOR Creator AFX Bought by 7RIDGE as LIBOR’s End Draws Near
The American Financial Exchange, a Chicago-based marketplace that allows small banks to borrow from each other, has been acquired. The exchange, launched eight years ago by Chicago futures pioneer Richard Sandor and the Chicago Board Options Exchange, was bought by private-equity firm 7Ridge for an undisclosed price.
American Financial Exchange Acquired by 7RIDGE
Transaction builds on AFX structure to expand and enhance AMERIBOR® adoption Chicago – April 18, 2023 – The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, today announced that 100% of the company was acquired by 7RIDGE, a specialized growth equity firm invested in transformative […]
American Financial Exchange’s Statement on Silicon Valley Bank and Signature Bank – Despite Market Turbulence, Exchange Performed Flawlessly
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 […]
Short-Term Rate Benchmarks: The Post-LIBOR Regime
How the LIBOR Transition Affects the Supply of Revolving Credit
In the United States, most commercial and industrial (C&I) lending takes the form of revolving lines of credit, known as revolvers or credit lines. For decades, like other U.S. C&I loans, credit lines were typically indexed to the London Interbank Offered Rate (LIBOR). However, since 2022, the U.S. and other developed-market economies have transitioned from […]