ISDA Extends Response Deadline to Consultation on Pre-Cessation Fallbacks for Derivatives
ISDA extended the response deadline to a consultation on implementing pre-cessation fallbacks for derivatives. The deadline was extended from March 25, 2020 to April 1, 2020.
As previously covered, ISDA asked respondents whether expected amendments to the 2006 ISDA Definitions should contain triggers for benchmark change based on a "non-representativeness" pre-cessation trigger. Per the consultation, the spread adjustment would then be calculated as of the relevant "non-representativeness" announcement date (or permanent cessation, if earlier), but fallbacks would be implemented based on a permanent cessation or a statement by the UK Financial Conduct Authority that LIBOR is "non-representative."