ARRC Commends Signing of New York State LIBOR Legislation
"[T]his legislation will significantly reduce operational and legal risks for many market participants and help them seamlessly transition to the Secured Overnight Financing Rate."
ARRC Chair Tom Wipf
"[T]his legislation will significantly reduce operational and legal risks for many market participants and help them seamlessly transition to the Secured Overnight Financing Rate."
ARRC Chair Tom Wipf
The Alternative Reference Rates Committee ("ARRC") commended New York State Governor Andrew Cuomo's signing of legislation meant to reduce potential disputes and market disruption associated with the transition away from the London Inter-Bank Offered Rate ("LIBOR").
The ARRC first introduced the bill last year to address legacy contracts that will reach maturity without effective fallbacks after mid-2023, at which point LIBOR will be discontinued. As previously noted, many of the financial products and contracts referencing LIBOR are governed by New York law. This legislation is intended to decrease the burden on New York's courts resulting from legal uncertainty associated with the transition from LIBOR.