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
The ICE Benchmark Administration published a consultation on its intention to cease publication of the USD LIBOR ICE Swap Rate for all tenors after June 30, 2023.
The ICE Benchmark Administration decided to cease publishing USD LIBOR ICE swap rate "runs" for all tenors immediately after publication of the rates on June 30, 2023.
IOSCO said that two "credit sensitive" alternatives to USD LIBOR should not be represented as being "IOSCO-compliant."
A private-sector working group on euro risk-free rates proposed guiding principles for fallback provisions in new contracts for euro-denominated cash products. The European Central Bank provided the secretariat for the working group. The working group highlighted the importance of market participants adequately preparing for a transition to risk-free rates. The new fallback language, according to the working group, should take into account the following principles: new fallback provisions should include a "permanent cessation trigger event"; "trigger events" should be objective; market