Latest News

14-Nov-2018 - FSB Reforming major interest rate benchmarks

The document, published by FSB, reports on progress made in implementing the recommendations of the Financial Stability Board (FSB) report Reforming Major Interest Rate Benchmarks (the 2014 Report), as well as in an additional stream of work launched by the FSB in 2016 to improve contractual robustness to the risk of major interest rate benchmarks’ discontinuation. In the 2014 Report, the FSB set out a series of recommendations for strengthening existing benchmarks for key interbank offered rates (IBORs) in the unsecured lending markets, and for promoting the development and adoption of alternative nearly risk-free reference rates (RFRs) where appropriate.

To read more, click here

17-Oct-18 - Second Stakeholder Consultation on Hybrid Methodology for Euribor

Brussels, 17 October 2018 – Today the European Money Markets Institute – EMMI announced the publication of the Second Stakeholder Consultation on the hybrid methodology for Euribor. This Second Consultation is part of EMMI’s commitment to deliver a reformed and robust methodology for Euribor, which aims to meet regulatory and stakeholder expectations in a timely manner.

To view the entire publication, click here

26-Sep-2018 - ISDA CEO Scott O’Malia Opening Remarks at ISDA Europe Conference

ISDA CEO Scott O’Malia Opening Remarks at ISDA Europe Conference, London

Read the remarks here. 

24-Sept-18 - ARRC Releases Consultations on Fallback Contract Language for Floating Rate Notes and Syndicated Business Loans

The Alternative Reference Rates Committee (ARRC) released consultations on U.S. dollar (USD) LIBOR fallback contract language for floating rate notes and syndicated business loans for public feedback. These consultations outline draft language for new contracts that reference LIBOR so as to ensure these contracts will continue to be effective in the event that LIBOR is no longer usable. Feedback should be submitted no later than November 8, 2018.

To read more, click here

19-Sep-2018 - Bank of England/ FCA Letter to CEO

On Wednesday 19 September the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) wrote to CEOs of major banks and insurers supervised in the UK asking for the preparations and actions they are taking to manage the transition from LIBOR to alternative interest rate benchmarks.

Read the complete letter here

17-Sept-2018: ISDA IBOR Fallbacks: Consultation on Certain Aspects of Fallbacks for Derivatives

The second fallbacks consultation webinar and updated FAQs have now been posted on ISDA.org.

In July, ISDA launched a market-wide consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (IBORs).

To view the second webinar click here...

August 2018 - European Central Bank - First Public consultation by the Working Group on euro risk-free rates

The first public consultation by the WG on euro risk-free rates on the assessment of candidate euro risk-free rates closed on Friday, 13 July 2018. The consultation drew considerable interest from the financial sector. 66 market participants -41 of which are from the banking sector - submitted responses or comments in relation to the consultation document.

Click here to see the full results

12-Jul-2018 - ISDA Fallback consultation

The International Swaps and Derivatives Association, Inc. (ISDA) has launched a market-wide consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (IBORs). The consultation sets out options for adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued.

To view the consultation, click here...

12-Jul-2018 - FCA Interest rate benchmark reform - Andrew Bailey Speech

A speech delivered by Andrew Bailey, FCA, on the 12th July 2018 covering:

  • Why firms need to end their reliance on LIBOR by end-2021.
  • Why overnight risk-free rates (RFRs) are the right foundation for interest rate markets.
  • The progress made on transition to these overnight risk-free rates and the work that remains to be done.

To read the speech in its entirety, click here.

25-June-2018 - ISDA - IBOR Global Benchmark Transition Report

Interbank offered rates (IBORs) play a central role in financial markets, and act as reference rates to hundreds of trillions of dollars in notional amount of derivatives and trillions of dollars in bonds, loans, securitizations and deposits. The dependence on IBORs by all sectors of the financial markets is changing, however.

To read the full post, click here...

27 Jul 2017 - FCA - The future of LIBOR

  • Andrew Bailey examines important questions about the future of LIBOR.
  • While significant improvements have been made to LIBOR since April 2013, the absence of active underlying markets raises a serious question about the sustainability of the LIBOR benchmarks that are based upon these markets.
  • Panel bank support to sustain LIBOR until end-2021 will enable a transition that can be planned and executed smoothly.
  • Work must begin in earnest on planning the transition to alternative reference rates that are based firmly on transactions.

To read the speech in its entirety, click here