1 In the spirit of encouraging this type of use of SOFR, I think it is appropriate for the Federal Reserve to consider publishing a compound average of SOFR that market participants could then use. It has been suggested that we could call it SAFR, for secured average financing rate, and this is something that we are encouraging our staff to explore.
Publishing a compound average rate that encourages broader use of SOFR would help make our financial system more resilient. Sandie will talk more about the creation of the forward-looking term version of SOFR in her remarks. SAFR would not be a competitor to this forward-looking rate, it would be in alliance with it.