LIBOR Transition Status Update: October 2020

The cessation of the London Inter-bank Offered Rate (LIBOR) at the end of 2021 has long been an issue vexing the global financial services industry given the scale and geographic spread of exposures to the affected benchmarks across the currencies and terms in which it is published. The LIBOR Transition Status Update: October 2020 provides … Read more

Legislating for LIBOR transition: UK/EU jurisdictional battle or complementary regimes?

This article was originally posted on Banking Litigation Notes. The European Commission has published its proposals for an EU legislative solution for the transition of legacy LIBOR contracts. This announcement follows hot on the heels of recent announcements for similar legislative fixes in the UK (read our blog post: UK Government announces LIBOR legislative fix: summary of proposals … Read more

Webinar – The Road to LIBOR Transition

LIBOR (and other IBORs) will cease to exist in their current form from the end of 2021, creating significant issues for financial institutions with exposure to LIBOR contracts, and the risks associated with the economic consequences of switching to the replacement Risk Free Rates. In 2019, Michael Held, the New York Fed’s GC, described the … Read more

UK Tough Legacy Taskforce recommends LIBOR legislative fix: key risks and next steps

This article was originally published on Banking Litigation Notes. The UK’s Tough Legacy Taskforce (Taskforce) has issued a paper on “tough legacy” issues in the transition from LIBOR. In an important intervention, it has recommended a legislative fix for all asset classes and possibly all LIBOR currencies. The scope of the recommendation from the Taskforce … Read more

ISDA releases report explaining final results of LIBOR consultation on pre-cessation fallbacks: the nuance behind the consensus

This article was originally published on Banking Litigation Notes. We commented last month on the announcement from the International Swaps and Derivatives Association (ISDA), confirming the preliminary results of its re-consultation on the implementation of pre-cessation fallbacks for derivatives referenced to LIBOR: ISDA pre-cessation fallback consensus: will this reduce legacy LIBOR risk in the derivatives … Read more

ISDA releases report explaining final results of LIBOR consultation on pre-cessation fallbacks: the nuance behind the consensus

We commented last month on the announcement from the International Swaps and Derivatives Association (ISDA), confirming the preliminary results of its re-consultation on the implementation of pre-cessation fallbacks for derivatives referenced to LIBOR: ISDA pre-cessation fallback consensus: will this reduce legacy LIBOR risk in the derivatives market? ISDA has now published a report summarising the responses received from the industry to the consultation, and it makes for very interesting reading. Read more