THREAD 🧵 ON LIBOR TO SOFR RATE CHANGE
DEADLINE: Friday 30th June 2023
What does this mean and how will it affect forex traders?
There is a lot of talk online about how this is the end of enslavement through monetary control. This thread will shine light on what is happening.
DEADLINE: Friday 30th June 2023
What does this mean and how will it affect forex traders?
There is a lot of talk online about how this is the end of enslavement through monetary control. This thread will shine light on what is happening.
Let’s start at the top. What is LIBOR?
Libor stands for London Interbank Offered Rate. It is the benchmark that banks use to calculate interest payments for financial products like commercial loans.
The LIBOR system is known to be gamed and easy to undermine. Read this story:
Libor stands for London Interbank Offered Rate. It is the benchmark that banks use to calculate interest payments for financial products like commercial loans.
The LIBOR system is known to be gamed and easy to undermine. Read this story:
The FCA fined Barclays bank £60m (largest FCA fine at the time). US regulators (CFTC, DOJ, FBI & SEC) were involved in this investigation and imposed their own fines in excess of $350m.
The Federal Reserve (not getting into who the FED are, outside scope of this thread) have decided through the ARRC to make the change to SOFR which stands for Secured Overnight Financing Rate. This is meant to make it harder for banks to lose money to insider fraudulent activity.
Such a large scale change in calculating interest payments will surely affect the whole financial industry?
Yes.
This transition is happening WORLDWIDE. This is where some conspiracies are claiming the end of financial enslavement. (More on this later on in this thread)
Yes.
This transition is happening WORLDWIDE. This is where some conspiracies are claiming the end of financial enslavement. (More on this later on in this thread)
Back to SOFR. SOFR is based on data from observable marketplace transactions as opposed to the expert “judgement” of panel banks (LIBOR). SOFR is not the only alternative; the countries below have their own alternatives to the US based SOFR system:
UK: SONIA (Sterling Over Night Indexed Average
EU: ESTR (Euro Short-Term Rate)
Canada: CORRA (Canadian Overnight Repo Rate Average)
Japan: TONAR (Tokyo Overnight Average Rate)
Remember; SOFR is has not been declared the only alternative to LIBOR.
How will markets be affected?
EU: ESTR (Euro Short-Term Rate)
Canada: CORRA (Canadian Overnight Repo Rate Average)
Japan: TONAR (Tokyo Overnight Average Rate)
Remember; SOFR is has not been declared the only alternative to LIBOR.
How will markets be affected?
Any bank that deals with financial products and contracts will be impacted. Here is where things get interesting. You remember the deadline of moving from LIBOR to SOFR is this Friday, 30th June 2023?
Most conspiracies believe this date to be when the system “resets” back to Gold Standard to end the financial enslavement of humanity.
However they are wrong.
Why?
Because the transition from LIBOR to SOFR has ALREADY TAKEN PLACE!
Banks have been transitioning since 2020/21
However they are wrong.
Why?
Because the transition from LIBOR to SOFR has ALREADY TAKEN PLACE!
Banks have been transitioning since 2020/21
The ICE Benchmark Administration (IBA) stopped publishing LIBOR rates back in December 2021. Most banks have taken a proactive enterprise-wide approach to prepare for the change participating in industry forums such as ARRC, ISDA & LSTA.
Adjustments have been made to operating systems, updated training of associates and updating documentation language (hardwired fallback language).
At this point, there is no bank left in the world using the LIBOR system. If you find one, I would stay away from that bank LOL
At this point, there is no bank left in the world using the LIBOR system. If you find one, I would stay away from that bank LOL
Hardwired fallback language defines the path to transition to a new benchmark interest rate. Once HFL is introduced, no other amendments to the loan agreement is needed.
HFL ensures smooth transition from existing LIBOR products to SOFR based financial products.
HFL ensures smooth transition from existing LIBOR products to SOFR based financial products.
There will be no big catastrophic event on Friday 30th June that “ends” the current operation of the markets. This date has largely become irrelevant. There will be no large scale move to using gold standard moving forward. Anyone claiming so needs to understand the following:
The FEDERAL RESERVE are the ones who introduced this new SOFR rate system. How will the current financial enslavement end at the hands of those who are doing the financial enslavement?
It’s such a micky mouse way to look at the current situation LMAO.
IGNORE these people.
It’s such a micky mouse way to look at the current situation LMAO.
IGNORE these people.
So there you have it!
-LIBOR to SOFR transition has already taken place.
-There will be no big event on Friday.
-The markets will continue to operate as they have done.
-You will read this thread, share it widely and follow my account for more value-laden threads. Peace!
-LIBOR to SOFR transition has already taken place.
-There will be no big event on Friday.
-The markets will continue to operate as they have done.
-You will read this thread, share it widely and follow my account for more value-laden threads. Peace!
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