LIBOR is used as a reference rate for financial contracts worth trillions of dollars. But what happens if, after 2021, LIBOR or another interbank offered rate ceases to exist while contracts are still referenced to that rate? That’s where benchmark fallbacks come in.
This short animation video explains what fallbacks are and why they are necessary, and explains the process for implementing them in new and legacy cleared and non-cleared derivatives trades.
For more information on fallbacks and benchmark transition, visit the ISDA website.
If you can’t access the YouTube video above, please click here (best viewed in Chrome).
This video is also available on ISDA’s Facebook page.
Latest
Response to Eurosystem Consultation on Appia
On April 22, ISDA responded to the Eurosystem consultation on the Appia roadmap. ISDA broadly supports the roadmap and its high level principles, while recommending that the principle on market access and integration should be expanded to explicitly address interoperability...
ISDA Responds to ESMA on PTRR Clearing Exemption
On April 20, ISDA submitted a response to the European Securities and Markets Authority (ESMA) consultation paper on a draft regulatory technical standard (RTS) for the post-trade risk reduction (PTRR) exemption from the derivatives clearing obligation under Article 4b of the...
Response on Competitiveness of EU Banking Sector
On April 17, ISDA responded to the European Commission’s (EC) targeted consultation on the competitiveness of the EU banking sector. The EU is aiming to bolster the ability of its financial markets and banking sector to grow, remain competitive and...
India Forum Scott O'Malia Opening Remarks
India Derivatives Markets Forum April 16, 2026 Opening Remarks Scott O’Malia, ISDA Chief Executive Good morning and welcome. This is the third year we’ve run the India Derivatives Markets Forum, and the number of people attending has grown each...