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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Credit Derivatives Trading in EU, UK and US

ISDA is expanding its SwapsInfo dataset to include European credit derivatives trading activity, complementing existing research on credit default swaps (CDS) trading in the US. This addition provides a more comprehensive view of global market trends, offering valuable insights into...