The FCA opened a consultation on 30 June seeking views on winding down the 1, 3 and 6-month synthetic sterling LIBOR settings and requesting information on market participants’ exposure to US dollar LIBOR.
Since 31 December 2021, publication of 24 LIBOR settings ended, leaving only five US dollar LIBOR settings continue to be calculated using
On 29 July 2021, the ARRC has formally recommended the CME Group’s forward-looking Secured Overnight Financing Rate (SOFR) term rates (Term SOFR). It follows the completion of interdealer trading conventions to SOFR earlier this week. This means that parties which have contracts which include the ARRC hardwired fallbacks will fallback to Term SOFR given that
On 25 March 2021, the Working Group on Sterling Risk-Free Reference Rates (Working Group) published the minutes from its virtual meeting held on 23 February 2021.
Key points in the minutes include:
On 22 March 2021, the International Islamic Financial Market (IIFM) issued a White Paper ‘Global Benchmark Rate Reforms and Implications of IBOR Transition for Islamic Finance’. The White Paper is based on contributions from leading financial institutions, accounting firms, law firms (including Norton Rose Fulbright) and other market participants. Its purpose is
Today, the FCA has confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative:
Yesterday, the ICE Benchmark Administration (IBA) which compiles and oversees LIBOR, announced its impending consultation on what it is effectively a proposed extension of most (and the more widely used) US dollar (USD) LIBOR tenors until 30 June 2023. This is hugely significant for the markets in Asia where USD is by far the most
On 11th September the Loan Market Association published an exposure draft multicurrency term and revolving facilities agreement incorporating rate switch provisions (the Rate Switch Agreement). The draft is for the purposes of switching from an initial IBOR forward looking term rate referenced Loan in any currency determined by reference to an existing forward
The recommendations reiterate that market participants should be ready to offer non-LIBOR loans’ products by end Q3 2020. SONIA compounded in arrears remains the Working Group’s recommended alternative to Sterling LIBOR and the intent of the recommendations is to enable and expedite the transition away from the use of LIBOR based products for the loan
On 1 September 2020, the Working Group on Sterling Risk-Free Reference Rates published a statement outlining recommendations on conventions to support the use of Sterling Overnight Index Average (SONIA) in loan markets for Sterling Bilateral and Syndicated Facilities, including Multicurrency Syndicated Facilities where there is a sterling currency option.
The recommendations are intended
Tuesday 14 July | 08:30H BST
We invite you to join our interactive webinar during which we will discuss recent LIBOR transition updates from a loans, derivatives and regulatory perspective as well as talk about some of the key risks and challenges from a disputes viewpoint.
With some banks well underway with the due diligence