ISDA will review and amend its fallback language following receipt of letters from the Financial Conduct Authority and the Federal Reserve Board expressing concern regarding ISDA's fallback language for credit-sensitive rates.
News & Insights
At a Financial Stability Oversight Council meeting on June 11, 2021, Federal Reserve Board Vice Chair for Supervision Randal K. Quarles encouraged the move toward the Secured Overnight Financing Rate and warned banks that the use of USD LIBOR quotes available after December 2021 for new products would create safety-and-soundness risks.
The U.S. House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets considered legislation and testimony concerning the transition from the London Inter-Bank Offered Rate.
On November 18, the ICE Benchmark Administration and the UK Financial Conduct Authority published separate announcements on the future of the London Inter-bank Offered Rate.
The Bank of England will begin publishing a daily Sterling Overnight Index Average Compounded Index on August 3, 2020.