ArticleByRef Copy

GET {{api-host}}/content/drn:consumer.content.Originid.SB11401322919499484579904588045202911179398

HEADERS

RESPONSES

status: OK

{"jsonapi":{"version":"1.0"},"data":{"id":"drn:consumer.content.originid.SB11401322919499484579904588045202911179398","type":"content","attributes":{"content_type":"Article","associations":{"root_id":"SB01401322919499484579904588045202911179398"},"authors":[{"full_name":"Julia-Ambra Verlaine","topic_id":"8457"}],"body":[{"type":"Image","ref":"media-7"},{"type":"Paragraph","display":"Plain","content":[{"text":"Efforts to replace the troubled London interbank offered rate are showing signs of progress."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"Trading in derivatives tied to Wall Street’s preferred alternative, the Secured Overnight Financing Rate, surged 78% in August, according to TD Securities. The increase comes ahead of a year-end deadline "},{"icon":"none","link_type":"EXTERNAL","type":"Link","ref":"i1-SB11401322919499484579904588045202911179398","text":"to phase out Libor"},{"text":", which helps set interest costs on trillions of dollars in financial products but was marked for scrap several years ago after a manipulation scandal."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"Finding a substitute poses a major challenge for the financial industry. Banks and companies are seeking a reference rate that reflects the risks from short-term lending—supported by a market that behaves in a predictable manner—to ensure that loans are affordable for borrowers and profitable for lenders."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"“The sharp acceleration in SOFR volumes will make it easier for markets to transition away from Libor,” said "},{"type":"Entity","entity_type":"person","significance":"PassingMention","ref":"PERSON|Goldberg, Gennadiy","text":"Gennadiy Goldberg"},{"text":", U.S. rates strategist at TD Securities in New York."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"The growth marks a welcome sign to regulators and others who have complained that the changeover was dragging. While some hedge funds and asset managers have adopted the new rate, some companies and regional banks have held off, either waiting for more clarity or considering "},{"icon":"none","link_type":"EXTERNAL","type":"Link","ref":"i2-SB11401322919499484579904588045202911179398","text":"alternatives that resemble Libor"},{"text":" more closely."}]},{"type":"Inset","inset_type":"dynamic","properties":{"url":"https://asset.wsj.net/dynamic-insets/charts/cdc_d639f8581f1829a062135260.json","responsive":{"layout":"wrap"},"scope":{"scope":["web","mobileapps"]}},"ref":"inset-1"},{"type":"Inset","inset_type":"dynamic","properties":{"url":"https://asset.wsj.net/dynamic-insets/charts/cdc_5122e95530159d1d66b500bc.json","responsive":{"layout":"wrap"},"scope":{"scope":["web","mobileapps"]}},"ref":"inset-2"},{"type":"Paragraph","display":"Plain","content":[{"text":"SOFR, the main proposed alternative, is based on the cost of transactions in the market for overnight repurchase agreements, where large banks and hedge funds borrow or lend to one another using U.S. Treasurys as collateral. Using the repo market as a foundation for SOFR is new to investors and corporations accustomed to a rate linked to the risk of lending between banks. "}]},{"type":"Paragraph","display":"Plain","content":[{"text":"In June, a "},{"icon":"none","link_type":"EXTERNAL","type":"Link","ref":"i5-SB11401322919499484579904588045202911179398","text":"Commodity Futures Trading Commission subcommittee pushed an initiative"},{"text":" dubbed “SOFR First” to persuade market players to adopt the new benchmark and hasten the transition away from Libor. The committee said that as of July, big banks would stop seeing certain derivatives priced in Libor on dealer screens."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"The initiative helped push enough growth in SOFR-linked derivatives to attract clients and kick-start the market, said "},{"type":"Entity","entity_type":"person","significance":"PassingMention","ref":"PERSON|Pluta, Thomas","text":"Thomas Pluta"},{"text":", global head of linear rates trading at JPMorgan."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"The share of swap trades that mature after June 2023 jumped to 33% in August from just 10% in July. June 2023 is when roughly $200 trillion of existing interest-rate derivatives and business loans tied to Libor expire after an 18-month extension "},{"icon":"none","link_type":"EXTERNAL","type":"Link","ref":"i6-SB11401322919499484579904588045202911179398","text":"backed by U.S. officials"},{"text":"."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"“The SOFR First initiative was a key step toward supercharging growth in SOFR derivatives trading,” said "},{"type":"Entity","entity_type":"person","significance":"PassingMention","ref":"PERSON|Wipf, Tom","text":"Tom Wipf"},{"text":", the Morgan Stanley banker who heads up the Alternative Reference Rates Committee. It comprises major banks, insurers and asset managers working alongside the New York Fed and backs SOFR."}]},{"type":"Image","ref":"media-8"},{"type":"Paragraph","display":"Plain","content":[{"text":"Other alternatives are also growing. Some on Wall Street have started using the Bloomberg Short-Term Bank Yield Index as a benchmark, while "},{"icon":"none","link_type":"EXTERNAL","type":"Link","ref":"i7-SB11401322919499484579904588045202911179398","text":"regional banks have gravitated"},{"text":" to the American Financial Exchange’s Ameribor because it rises and falls with their funding costs."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"Exchange operator Cboe Global Markets Inc. said that next week it will start trading an Ameribor-based benchmark called “Term-30” that helps investors plan for interest-rate risk one month in the future."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"Offering more choices will help market participants match their borrowing and trading needs, said "},{"type":"Entity","entity_type":"person","significance":"PassingMention","ref":"PERSON|Sandor, Richard","text":"Richard Sandor"},{"text":", founder of the AFE, where banks lend to each other through mutual lines of credit."}]},{"type":"Paragraph","display":"Plain","content":[{"text":"U.S. financial officials, including Treasury Secretary "},{"type":"Entity","entity_type":"person","significance":"PassingMention","ref":"PERSON|Janet Yellen","text":"Janet Yellen"},{"text":", said in an August letter that they were concerned U.S. companies were still facing challenges with the transition so close to the deadline."}]},{"type":"Inset","inset_type":"richtext","properties":{"responsive":{"layout":"inline"},"scope":{"scope":["web","mobileapps"]}},"ref":"inset-3","content":[{"type":"Heading","sub_type":"Small","content":[{"text":"A Split Commission"}]},{"type":"Paragraph","display":"Plain","content":[{"text":"More WSJ coverage selected by the editors"}]},{"type":"List","ordered":false,"content":[{"type":"listitem","content":[{"icon":"none","link_type":"EXTERNAL","type":"Link","ref":"i8-SB11401322919499484579904588045202911179398","text":"CFTC Departure to Leave Five-Person Panel with One Republican, One Democrat"}]}]}]},{"type":"Paragraph","display":"Plain","content":[{"type":"Emphasis","emphasis_type":"Subscript","text":"Write to "},{"text":"Julia-Ambra Verlaine at "},{"link_type":"EXTERNAL","type":"Link","ref":"i9-SB11401322919499484579904588045202911179398","text":"Julia.Verlaine@wsj.com"}]}],"byline":{"content":[{"text":"By "},{"type":"Entity","entity_type":"author","ref":"author|Julia-Ambra Verlaine","text":"Julia-Ambra Verlaine"}]},"column_name":"","copyright":{"text":"Dow Jones \u0026 Company, Inc."},"headline":{"main":{"text":"Libor Alternative Is Winning Over Derivatives Traders"},"deck":{"type":"paragraph","content":[{"text":"Trading in financial contracts tied to Wall Street’s preferred alternative, SOFR, has surged"}]}},"hosted_url":"https://www.wsj.com/articles/libor-alternative-is-winning-over-derivatives-traders-11631271601?mod=wsj_RHF","content_resources":[{"name":"Julia-Ambra Verlaine","id":"author|Julia-Ambra Verlaine","type":"author"},{"first_name":"","last_name":"","confidence":0,"name_format":"GivenNameFirst","id":"person|Goldberg, Gennadiy","type":"person"},{"first_name":"","last_name":"","confidence":0,"name_format":"GivenNameFirst","id":"person|Pluta, Thomas","type":"person"},{"first_name":"","last_name":"","confidence":0,"name_format":"GivenNameFirst","id":"person|Wipf, Tom","type":"person"},{"first_name":"","last_name":"","confidence":0,"name_format":"GivenNameFirst","id":"person|Sandor, Richard","type":"person"},{"first_name":"","last_name":"","confidence":0,"name_format":"GivenNameFirst","id":"person|Janet Yellen","type":"person"},{"variant":"external","type":"link","uri":"https://www.wsj.com/articles/libor-pains-deepen-as-deadline-for-benchmarks-demise-approaches-11597405737","id":"i1-SB11401322919499484579904588045202911179398"},{"variant":"external","type":"link","uri":"https://www.wsj.com/articles/libor-replacement-race-heats-up-11620898202","id":"i2-SB11401322919499484579904588045202911179398"},{"variant":"external","type":"link","uri":"https://www.wsj.com/articles/regulators-tell-banks-it-is-time-to-stop-using-libor-11623582002","id":"i5-SB11401322919499484579904588045202911179398"},{"variant":"external","type":"link","uri":"https://www.wsj.com/articles/u-s-regulators-press-banks-to-transition-from-libor-for-new-transactions-11606745216","id":"i6-SB11401322919499484579904588045202911179398"},{"variant":"external","type":"link","uri":"https://www.wsj.com/articles/libor-replacement-competitor-gains-strength-from-new-offerings-11618833813","id":"i7-SB11401322919499484579904588045202911179398"},{"variant":"external","type":"link","uri":"https://www.wsj.com/articles/cftc-s-berkovitz-to-step-down-next-month-11631202495","id":"i8-SB11401322919499484579904588045202911179398"},{"variant":"email","type":"link","uri":"mailto:Julia.Verlaine@wsj.com","id":"i9-SB11401322919499484579904588045202911179398"},{"type":"image","media_type":"Photo","reuse_type":"full","slug":"S1-LX587_SOFRSW_M_20210909111715.jpg","name":"S1-LX587_SOFRSW_M_20210909111715.jpg","width":1280,"height":853,"size_code":"M","alternate_text":"image","credit":"Amir Hamja for The Wall Street Journal","alt_images":[{"name":"S1-LX587_SOFRSW_A_20210909111715.jpg","width":76,"height":76,"size_code":"A","url":"https://images.wsj.net/im-398315/A"},{"name":"S1-LX587_SOFRSW_C_20210909111715.jpg","width":167,"height":94,"size_code":"C","url":"https://images.wsj.net/im-398315/C"},{"name":"S1-LX587_SOFRSW_D_20210909111715.jpg","width":262,"height":174,"size_code":"D","url":"https://images.wsj.net/im-398315/D"},{"name":"S1-LX587_SOFRSW_E_20210909111715.jpg","width":359,"height":239,"size_code":"E","url":"https://images.wsj.net/im-398315/E"},{"name":"S1-LX587_SOFRSW_G_20210909111715.jpg","width":553,"height":369,"size_code":"G","url":"https://images.wsj.net/im-398315/G"}],"properties":{"softcrop":"Full Sized Horizontal","imphotoid":"im-398315","location":"https://images.wsj.net/im-398315/?size=1.5"},"id":"media-6"},{"type":"image","media_type":"Photo","reuse_type":"full","slug":"SOFRSWAPS_1","name":"S1-LX587_SOFRSW_OR_20210909111715.jpg","width":1279,"height":853,"alternate_text":"image","credit":"Amir Hamja for The Wall Street Journal","caption":"Finding a substitute for Libor poses a major challenge for the financial industry.","alt_images":[{"name":"S1-LX587_SOFRSW_A_20210909111715.jpg","width":76,"height":76,"size_code":"A","url":"https://images.wsj.net/im-398315/A"},{"name":"S1-LX587_SOFRSW_C_20210909111715.jpg","width":167,"height":94,"size_code":"C","url":"https://images.wsj.net/im-398315/C"},{"name":"S1-LX587_SOFRSW_D_20210909111715.jpg","width":262,"height":174,"size_code":"D","url":"https://images.wsj.net/im-398315/D"},{"name":"S1-LX587_SOFRSW_E_20210909111715.jpg","width":359,"height":239,"size_code":"E","url":"https://images.wsj.net/im-398315/E"},{"name":"S1-LX587_SOFRSW_G_20210909111715.jpg","width":553,"height":369,"size_code":"G","url":"https://images.wsj.net/im-398315/G"},{"name":"S1-LX587_SOFRSW_M_20210909111715.jpg","width":1280,"height":853,"size_code":"M","url":"https://images.wsj.net/im-398315/M"},{"name":"S1-LX587_SOFRSW_OR_20210909111715.jpg","width":1279,"height":853,"size_code":"OR","url":"https://images.wsj.net/im-398315/OR"}],"properties":{"responsive":{"layout":"header"},"softcrop":"Full Sized Horizontal","imphotoid":"im-398315","location":"https://images.wsj.net/im-398315/?size=1.5"},"id":"media-7"},{"type":"image","media_type":"Photo","reuse_type":"full","slug":"SOFRSWAPS_2","name":"S1-LX588_SOFRSW_OR_20210909111735.jpg","width":1280,"height":854,"alternate_text":"image","credit":"Anna Moneymaker/Getty Images","caption":"Treasury Secretary Janet Yellen has expressed concern that U.S. companies were still facing challenges with the transition so close to the deadline to phase out Libor.","alt_images":[{"name":"S1-LX588_SOFRSW_A_20210909111735.jpg","width":76,"height":76,"size_code":"A","url":"https://images.wsj.net/im-398316/A"},{"name":"S1-LX588_SOFRSW_C_20210909111735.jpg","width":167,"height":94,"size_code":"C","url":"https://images.wsj.net/im-398316/C"},{"name":"S1-LX588_SOFRSW_D_20210909111735.jpg","width":262,"height":174,"size_code":"D","url":"https://images.wsj.net/im-398316/D"},{"name":"S1-LX588_SOFRSW_E_20210909111735.jpg","width":359,"height":239,"size_code":"E","url":"https://images.wsj.net/im-398316/E"},{"name":"S1-LX588_SOFRSW_G_20210909111735.jpg","width":553,"height":369,"size_code":"G","url":"https://images.wsj.net/im-398316/G"},{"name":"S1-LX588_SOFRSW_M_20210909111735.jpg","width":1280,"height":853,"size_code":"M","url":"https://images.wsj.net/im-398316/M"}],"properties":{"responsive":{"layout":"inline"},"scope":{"scope":["web","mobileapps"]},"promotype":"None","softcrop":"Full Sized Horizontal","imphotoid":"im-398316","location":"https://images.wsj.net/im-398316/?size=1.5"},"id":"media-8"},{"type":"inset","inset_type":"dynamic","properties":{"url":"https://asset.wsj.net/dynamic-insets/charts/cdc_d639f8581f1829a062135260.json","responsive":{"layout":"wrap"},"scope":{"scope":["web","mobileapps"]},"alt":{"render":{"src":"https://graphics.wsj.com/dynamic-inset-iframer/?url=https://asset.wsj.net/dynamic-insets/charts/cdc_d639f8581f1829a062135260.json"},"text":null,"link":"#","picture":{"sources":{"media":"4u","srcset":"https://images.wsj.net/im-398347?width=600","width":600,"height":800},"img":{"src":"https://images.wsj.net/im-398347?width=600","type":"graphic","width":600,"height":800}}}},"id":"inset-1"},{"type":"inset","inset_type":"dynamic","properties":{"url":"https://asset.wsj.net/dynamic-insets/charts/cdc_5122e95530159d1d66b500bc.json","responsive":{"layout":"wrap"},"scope":{"scope":["web","mobileapps"]},"alt":{"render":{"src":"https://graphics.wsj.com/dynamic-inset-iframer/?url=https://asset.wsj.net/dynamic-insets/charts/cdc_5122e95530159d1d66b500bc.json"},"text":null,"link":"#","picture":{"sources":{"media":"4u","srcset":"https://images.wsj.net/im-398357?width=600","width":600,"height":800},"img":{"src":"https://images.wsj.net/im-398357?width=600","type":"graphic","width":600,"height":800}}}},"id":"inset-2"},{"type":"inset","inset_type":"richtext","properties":{"responsive":{"layout":"inline"},"scope":{"scope":["web","mobileapps"]}},"id":"inset-3"}],"live_date":"09/10/2021","live_time":"2021-09-10T11:00:00Z","major_revision_date":"2021-09-10T07:00:00","minor_revision":true,"modification_date":"09/10/2021","modification_time":"2021-09-10T11:00:00Z","original_headline":{"text":"Libor Alternative Is Winning Over Derivatives Traders"},"page":"Markets","product":"WSJ.com","publication_date":"09/10/2021","publication_time":"2021-09-10T11:00:00Z","publisher":{"name":"The Wall Street Journal Interactive Edition"},"section_name":{"text":"Markets"},"section_type":"Markets Main","seo_id":"libor-alternative-is-winning-over-derivatives-traders-11631271601","summary":{"headline":{"main":{"type":"headline","content":[{"text":"Libor Alternative Is Winning Over Derivatives Traders"}]}},"body":[{"type":"image","ref":"media-6"},{"type":"paragraph","content":[{"text":"Trading in financial contracts tied to Wall Street’s preferred alternative, SOFR, has surged."}]}]}},"links":{"self":"https://api.dowjones.com/content/drn:consumer.content.Originid.SB11401322919499484579904588045202911179398"},"meta":{"language":{"code":"en-us"},"original_doc_id":"SB11401322919499484579904588045202911179398","properties":[{"type":"code","symbol":"Julia-Ambra Verlaine","codeType":"author","properties":{"name":"Julia-Ambra Verlaine","extractedtext":"Julia-Ambra Verlaine","topicid":"8457","rank":"1","seoname":"julia-ambra-verlaine","author":"Julia-Ambra Verlaine","id":"Julia-Ambra Verlaine"}},{"type":"code","symbol":"","codeType":"isbn","properties":{}}],"problems":[],"metrics":{"paragraph_count":15,"character_count":3835,"word_count":606,"image_count":2,"video_count":0,"chart_count":0,"audio_count":0},"code_sets":[{"type":"People","id":"pe","codes":[{"codeschema":"DJID","descriptor":"Richard Sandor","significance":"Mention"},{"codeschema":"DJID","descriptor":"Tom Wipf","significance":"Mention"},{"codeschema":"DJID","code":"110608003","significance":"Mention"},{"codeschema":"DJID","code":"176968586","significance":"Mention"},{"codeschema":"DJID","code":"184533477","significance":"Mention"}]},{"type":"Region","id":"re","codes":[{"codeschema":"DJN","code":"R/US","significance":"About"},{"codeschema":"DJN","code":"R/NME"},{"codeschema":"DJID","code":"usa","significance":"About"},{"codeschema":"DJID","code":"namz"}]},{"type":"NewsSubject","id":"ns","codes":[{"codeschema":"DJN","code":"N/WER"},{"codeschema":"DJN","code":"N/DJN"},{"codeschema":"DJN","code":"P/PMDA"},{"codeschema":"DJN","code":"N/SWP"},{"codeschema":"DJN","code":"N/DRV","significance":"About"},{"codeschema":"DJN","code":"N/CMR"},{"codeschema":"DJN","code":"N/BKG"},{"codeschema":"DJN","code":"N/FFR","significance":"About"},{"codeschema":"DJN","code":"N/LIO","significance":"About"},{"codeschema":"DJN","code":"N/EMP"},{"codeschema":"DJN","code":"N/DSR"},{"codeschema":"DJN","code":"N/GENI"},{"codeschema":"DJN","code":"N/IEN"},{"codeschema":"DJN","code":"N/MKT"},{"codeschema":"DJN","code":"N/ONEW"},{"codeschema":"DJN","code":"N/OOPT"},{"codeschema":"DJN","code":"N/OMKM"},{"codeschema":"DJID","code":"effund","significance":"About"},{"codeschema":"DJID","code":"m15","significance":"About"},{"codeschema":"DJID","code":"elibor","significance":"About"},{"codeschema":"DJID","code":"e12"},{"codeschema":"DJID","code":"e1202"},{"codeschema":"DJID","code":"ecat"},{"codeschema":"DJID","code":"mcat"},{"codeschema":"DJID","code":"ncat"},{"codeschema":"DJID","code":"nfact"},{"codeschema":"DJID","code":"nfce"},{"codeschema":"DJID","code":"ONEW"},{"codeschema":"DJID","code":"OOPT"},{"codeschema":"DJID","code":"OMKM"}]},{"type":"Industry","id":"in","codes":[{"codeschema":"DJID","code":"i814"},{"codeschema":"DJID","code":"ihedge"},{"codeschema":"DJID","code":"i83107"},{"codeschema":"DJID","code":"i81502"},{"codeschema":"DJID","code":"i831"},{"codeschema":"DJID","code":"ialtinv"},{"codeschema":"DJID","code":"ibnk"},{"codeschema":"DJID","code":"ifinal"},{"codeschema":"DJID","code":"iinv"}]}],"keywords":["CHARTLOS"],"source":{"name":"The Wall Street Journal Interactive Edition"},"parser_version":"1.0.708.0"}}}