Adoption of Risk-Free Rates: Major Developments in 2020

Transition from LIBOR and other interbank offered rates (IBORs) to alternative risk-free rates (RFRs) is a monumental task and it is one of the biggest challenges facing the financial industry. The shift is critical because of the issues associated with the robustness and viability of some IBORs – and LIBOR in particular – given the sharp decline in activity in the unsecured interbank funding market.

This paper examines several major upcoming developments in 2020 related to the adoption of RFRs, including the publication of new benchmark fallbacks for derivatives contracts and central counterparty changes in discounting and price alignment interest for certain currencies.

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Documents (1) for Adoption of Risk-Free Rates: Major Developments in 2020

ISDA response to ESMA MiFIR Review Consultation

On July 11, ISDA submitted a response to the European Securities and Markets Authority's (ESMA) fourth package of Level 2 consultation under the Markets in Financial Instruments Regulation Review (MiFIR), on transparency for derivatives, package orders and input/output data for...