-
An interbank loan market for community and regional banks, and backed by the Chicago Board Options Exchange, plans to open for business next month.
November 10 -
It remains unclear if a new platform from the Chicago Board Options Exchange will provide enough incentives and safeguards to prompt community banks to switch from using the existing federal funds system.
September 16 -
WASHINGTON The Federal Reserve met with members of the world's largest banks and other global financial regulators on Monday to discuss alternatives to discredited interbank reference rates.
November 17
An interbank loan market that was created for small and regional banks has begun operations, recording $15 million in transactions on its first day.
The short-term loan market — known as the American Financial Exchange, or AFX — is
The first transaction — for a $5 million overnight, unsecured loan with a rate of 27 basis points — was made by the $28 billion-asset Frost Bank in San Antonio and the $27 billion-asset Associated Bank in Green Bay, Wis., the CBOE said.
Several additional banks also began trading, including the $16 billion-asset Arvest Bank in Fayetteville, Ark.; the $12 billion-asset Old National Bank in Evansville, Ind.; the $11 billion-asset MB Financial in Chicago; the $5 billion-asset ServisFirst Bank in Birmingham, Ala.; and the $4 billion-asset Brookline Bank in Brookline, Mass.
The CBOE did not provide details about the total number of banks that have signed up for the AFX.
In the coming weeks, the AFX will begin offering a 30-day, unsecured loans, according to the release.
Initial plans for the AFX included the creation of an interest-rate benchmark based on weekly transactions. The benchmark could serve as an
