Stay updated with breaking news from Reference Rates. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
In what may be the first step in a move away from the Secured Overnight Financing Rate (SOFR) as the replacement rate for LIBOR, the Loan Syndications & Trading Association (LSTA)...
Wednesday, April 21, 2021 Ready or not, borrowers are involuntarily seeing changes in the interest rates they are being charged. Why, you ask? Because there are serious, systemic risks associated with the most widely used interest rate basis in the world – the London Interbank Offered Rate (or LIBOR), including the LIBOR Rate for U.S. Dollar denominated loans and other financial products (USD LIBOR). The situation is so serious that regulatory authorities have said that “given consumer protection, litigation, and reputation risks, [they] believe entering into new contracts tha...
With only ten months left until the phase-out of the London Interbank Offered Rate (" LIBOR"), transition efforts should be well underway. In this bulletin, we discuss the ICE Benchmark Administration (the " IBA") and/or the Financial Conduct Authority's (the " FCA") expected announcement about the official cessation of LIBOR, and highlight the modified timelines for transitioning from LIBOR to an alternate risk-free rate (" RFR") recommended by the relevant working groups. 1. Expected Announcement on LIBOR Cessation On January 25, 2021, the administrator of LIBOR, the IBA, concluded its co...
Eurex - Virtual Roundtable On Swiss LIBOR And SARON®: The State Of Things In Switzerland Date 12/02/2021 Since the 2022 decomissioning of the Swiss LIBOR rate approaches, it is about time for an inventory of what has been achieved and what are the essential next steps. In Switzerland, the National Working Group (NWG) has proposed SARON® as an alternative interest rate benchmark. To help the market with an orderly transition to the new benchmark, Eurex has launched a Three-Month SARON® Futures contract, the first exchange-traded SARON® Futures globally, in October 2018. With this l...
To print this article, all you need is to be registered or login on Mondaq.com. The Financial Conduct Authority (FCA) has recently reiterated that '2021 is the critical year for firms to complete their transition away from LIBOR'. 1 LIBOR). In this article, we discuss the current state of play and the measures governments and institutions are taking to aid this transition, including the development of overnight risk-free rates ( RFRs), recommended transition milestones and proposed legislative reform. Development of RFRs The European Central Bank commenced publishing t...