Alternative Reference Rates Committee (ARRC)

The Alternative Reference Rates Committee (ARRC) is a group formed to develop and promote new benchmark interest rates that will replace the U.S. dollar LIBOR, which is a widely used reference rate for loans and financial contracts. As LIBOR faced challenges due to its vulnerability to manipulation and declining liquidity, the ARRC helps ensure a smooth transition by recommending more reliable, transparent rates based on actual market transactions. Their work enhances the stability and integrity of financial markets by providing accurate benchmarks for pricing and risk management.