Members of the Alternative Reference Rates Committee ("ARRC") and other market participants urged Governor Andrew Cuomo, Senate Majority Leader Andrea Stewart-Cousins and New York State Assembly Speaker Carl Heastie to support the adoption of an ARRC drafted legislative proposal intended to help facilitate the transition away from LIBOR.
The legislative proposal would use ARRC-recommended indices as "appropriate replacements" for LIBOR in financial contracts that otherwise would be "adversely affected" by the transition away from LIBOR (i.e., existing contracts that incorporate ambiguous fallback language or do not address the likely end of LIBOR in 2021). The authors of the letter stated that, because New York law governs a "substantial number" of the financial products and agreements that reference LIBOR, New York has a critical role in leading this transition.
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