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CME Group is planning to migrate the discounting to SOFR from Effective Fed Funds Rate (EFFR). Below is the link to their article: https://www.cmegroup.com/education/articles-and-reports/sofr-price-alignment-and-discounting-proposal.html

I want to understand how this SOFR discounting curve can be prepared as there is NO term structure as of now for SOFR rate. I have seen similar articles where firms are comparing the impact on derivatives portfolio of moving to SOFR discouting.

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There is (and was at the time of asking) a fairly liquid Outright SOFR OIS market. You also have futures. So there really is not much of a difference. Risk.net analyzed this. I think frequently OIS curves (FF) are constructed without futures but ultimately, instrument selection follows the same considerations for all curve construction exercises.

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