Earlier this week, ICE Benchmark Administration (IBA), the administrator of LIBOR, announced that it will consult on its intention to cease publication of one-week and two-month US dollar LIBOR at end-December 2021, and stop the remaining US dollar LIBOR settings immediately after publication on June 30, 2023. This followed an announcement on November 18 that IBA will consult on its plan to cease publication of all sterling, euro, Swiss franc and yen LIBOR settings at end-December 2021.
Alongside the November 30 release from IBA, the Federal Reserve Board (FRB) published a statement welcoming the development and encouraging banks to cease using US dollar LIBOR as soon as practicable, and in any event no later than the end of 2021. This was matched by a similar release from the UK Financial Conduct Authority (FCA), which set out some information about its proposed powers under the Financial Services Bill.
Since then, there’s been a lot of talk among market participants about how this will play out and what it means. Given more than 1,500 entities have now adhered to the ISDA IBOR Fallbacks Protocol, there have also been questions about the implications under the fallback calculation methodology.
Today, ISDA published a webinar answering some of those questions and featuring remarks from ISDA’s CEO Scott O’Malia, David Bowman of the FRB, Edwin Schooling Latter of the FCA, Deepak Sitlani of Linklaters and Tom Wipf of Morgan Stanley.
The webinar, as well as a full transcript of the recording and other related materials on benchmark reform and the transition from LIBOR, are available on the ISDA website.
If you can’t access the YouTube video above, please click here (best viewed in Chrome).
Latest
New Selection Process for Standard Reference Obligations (SROs) FAQs
This Frequently Asked Questions (“FAQ”) document gives information about the new selection process for Standard Reference Obligations (SROs). Note that ISDA may update these FAQs on occasion. Please check back periodically for new versions.
Refreshing the FX Definitions
A lot has changed in the FX derivatives market since 1998, when the last set of standard definitions for FX transactions were published. Trading volumes have grown substantially, and average daily turnover has risen by six times. Market practices have...
ISDA & EMTA Publish New FX Definitions
ISDA and EMTA, Inc., the trade association for emerging markets, have jointly published a revised set of standard definitions for foreign exchange (FX) derivatives transactions, which update key market practices and consolidate various FX and FX-related product templates and provisions...
ISDA Position Paper on SFDR Review
On February 27, ISDA and the Association for Financial Markets in Europe (AFME) published a position paper on the European Commission’s (EC) proposed revisions to the Sustainable Finance Disclosure Regulation (SFDR 2.0). The paper welcomes the EC’s proposal as a...