ISDA, AFME, ICMA, SIFMA and SIFMA AMG have today launched a roadmap that aggregates and summarizes existing information published by regulators and various public-/private-sector risk-free rate (RFR) working groups on the work conducted to date towards transitioning financial products and practices from certain interbank offered rates (IBORs) to the selected RFRs. The roadmap is designed to provide a single point of reference for those interested in understanding more about the motivation behind the initiative and some of the key challenges to be addressed.
Scope and Market Footprint
The roadmap covers LIBOR and certain other IBORs denominated in five currencies: euro, sterling, Swiss franc, US dollar and yen. Based on publicly available data, the roadmap notes that total outstanding notional exposure to the IBORs has been estimated at over $370 trillion. Derivatives, syndicated loans, securitizations, business and retail loans, floating-rate notes (FRNs) and deposits are all significantly exposed to LIBOR and other IBORs.
Next Steps: Global Industry Survey and Report
The roadmap is the first part of a comprehensive analysis of the issues and potential solutions related to transitioning from IBORs for a wide spectrum of financial instruments. The associations are also initiating a global survey of buy- and sell-side firms and infrastructure providers, which will feed into an in-depth report aimed at supporting interest rate benchmark transition planning efforts.
Please click on the attached PDF to read the full roadmap.
Documents (1) for IBOR Global Benchmark Transition Roadmap 2018
Latest
Deadline Pressure on Treasury Clearing
By the end of this year, the first phase of the US Securities and Exchange Commission’s (SEC) Treasury clearing mandate is scheduled to come into force, affecting users of US Treasury securities all over the world. It’s difficult to overstate...
ISDA Publishes Equity Definitions VE, Version 2.0
ISDA has published version 2.0 of the ISDA Equity Derivatives Definitions (Versionable Edition) (the “Equity Definitions VE”) on the MyLibrary platform. This publication includes, among other updates, provisions that can be used for documenting transactions with time-weighted average price or volume-weighted average price features,...
Marking a Milestone - IQ January 2025
It was a different time and a very different market, but 1985 remains a seminal year in the history of over-the-counter (OTC) derivatives – the year that ISDA was established and the very first industry standard document was published. While...
Response to FCA on SI Regime
On January 10, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) responded to questions from the UK Financial Conduct Authority (FCA) on the future of the systematic internalizer (SI) regime. In the response,...