On October 9, ISDA published a statement from its board of directors announcing that ISDA will launch the IBOR Fallbacks Supplement to the 2006 ISDA Definitions and the ISDA 2020 IBOR Fallbacks Protocol on October 23, 2020, and that the supplement and the amendments made by the protocol will take effect on January 25, 2021. According to the statement, the protocol will remain open for adherence after the January 25, 2021, effective date.
Also on October 9, the U.S. Alternative Reference Rates Committee, a group of private-market participants convened by the Federal Reserve Board and Federal Reserve Bank of New York, issued a statement supporting the protocol and encouraging broad market uptake, and the Federal Reserve Board issued a Supervision and Regulation Letter recommending that supervised firms active in the derivatives market “give strong consideration to adhering to the Protocol.”
Our earlier blog post, ISDA Raises Starter Pistol on IBOR Transition Race, discussed ISDA’s press release regarding updating the fallbacks timetable.