American Financial Exchange, LLC

In his latest whitepaper, “SOFR Dynamics Are Not What You Wished,” Marco Macchiavelli, Assistant Professor of Finance at the University of Massachusetts Amherst, reports that SOFR is heavily influenced by month-end “window dressing” incentives and fluctuations in Treasury net-issuance. These factors have little to do with what a LIBOR replacement should ideally capture—bank funding risk. As federal budget deficits grow and Treasury issuance increases, SOFR may face greater volatility. AMERIBOR, a credit-sensitive reference rate, avoids such distortions. It remains unaffected by these factors, making it a more focused tool for assessing credit risk. To read the full whitepaper, please visit: https://lnkd.in/eHRPm9kq #SOFR #AMERIBOR #Banking #RiskManagement

AFX has completed its technology migration with Transaction Network Services (TNS), establishing critical independence and further enhancing the flexibility and agility of its marketplace. In a recent article from FOW's Radi Khasawneh, CEO John Shay discusses what the migration means and how it sets up the chance to open up new markets and an accelerated growth path for AFX. Read the full article here: https://lnkd.in/eyvXPdDZ

Today AFX is excited to officially announce our partnership with Transaction Network Services (TNS) and the completed migration of our trading platform and technology to TNS. Going forward, TNS will provide full management and hosting services to support the AFX marketplace, where over 250 US banks and financial institutions fulfill their interbank borrowing and lending needs. AFX CEO, John Shay, commented: “By partnering with TNS, AFX gains more flexibility and independence, enabling us to provide increased optionality and better serve America’s community and regional banks.” You can read the entire press release here: https://lnkd.in/eKahn53j

We’re excited to announce that AFX has partnered with EXIM Bank. Together, we will support the underserved customers of America's overlooked community and regional banks. As the provider of AMERIBOR, which offers a more advantageous credit-sensitive rate for these financial institutions, AFX is proud to partner with the like-minded EXIM Bank to continue their joint work for these banks.    Read the press release here: https://lnkd.in/eUMSiW_J

AFX was recently featured in a Traders Magazine article highlighting our new whitepaper, "AMERIBOR: A Better Credit Sensitive Reference Rate", produced in coordination with University of Massachusetts Amherst’s Marco Macchiavelli. The whitepaper, which examines reference rate options following the cessation of LIBOR in July 2023, outlines the benefits of credit-sensitive rates.   Read the full article for more on how AMERIBOR's advanced cyclical properties compare to other alternative overnight rates: https://lnkd.in/esv3cp9k

AFX CEO John Shay recently appeared on the "At the Forefront" podcast alongside Professor Marco Macchiavelli to discuss how credit-sensitive rates like our AMERIBOR benchmark provide regional and commercial banks with stability and security in the post-LIBOR era – especially during times of market volatility.    Tune in to the full episode below for more insights

Today, we announced the publication of new research in coordination with University of Massachusetts Amherst's Marco Macchiavelli, Assistant Professor of Finance with the Isenberg School of Management, UMass Amherst and former Principal Economist at the Federal Reserve. The whitepaper examines reference rate options following the cessation of LIBOR in July 2023. Macchiavelli’s research indicates that access to CSRs is important for smaller financial institutions across the U.S., especially during times of market stress. AFX CEO John Shay, commented: “The research conducted by Professor Macchiavelli underscores the need for a credit-sensitive rate. Community and regional banks are the backbone of America’s financial system. At AFX, we are proud to continue offering the AMERIBOR rate to best serve our 250 member across the country.” Read the full press release here: https://lnkd.in/etNSMAqH

TABB Group recently featured AFX CEO John Shay’s op-ed, “A Rate for Main Street: Why Commercial Banks Urgently Need Credit-Sensitive Benchmark Interest Rates.” In the piece, he makes the case for why credit-sensitive benchmark interest rates are a safer standard for commercial banks in the post-LIBOR era. Read more here: https://lnkd.in/dxS3_mzt

In the post-LIBOR era, America’s regional and local banks urgently require a new, credit-sensitive benchmark interest rate, based on real transactions and in alignment with the unique needs of their businesses. In this new op-ed, AFX CEO John Shay breaks down how a credit-sensitive benchmark interest rate can benefit commercial banks during times of market stress. Read on to hear our case for how alternative benchmark interest rates like AMERIBOR can create a more stable, efficient lending landscape and a more resilient banking system. https://lnkd.in/eU-WjTMT  

AFX CEO John Shay was recently interviewed by Radi Khasawneh, Derivatives Editor at FOW for a piece looking at the impact of the August selloff and the importance of credit sensitive rates, especially during times of volatility.   “We are the only fully electronic, resilient and tested marketplace out there. We are determined to stick to our home cooking – which is growing membership, traded volumes and raising awareness as to the importance of a credit sensitive rate.” – John Shay, CEO of AFX   Read more here: https://lnkd.in/e2txGHSz