Eye on IBOR Transition

December 2021 Is In Sight

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Eye on IBOR Transition

The New York LIBOR Legislative Solution Becomes Law

By Bradley Berman & J. Paul Forrester

April 9, 2021

Man looking through telescope standing on top of percentage sign. Concept business illustration

On April 7, 2021, the proposed New York “legislative solution” for legacy USD LIBOR contracts became Article 18-C of the New York General Obligations Law. Article 18-C is primarily aimed at USD LIBOR contracts, securities or instruments (e.g., floating rate notes (“FRNs”), loans, securitizations and mortgages) with the 2006 ISDA Definitions LIBOR fallbacks, or no fallback provisions at all, and which are governed by New York law. This article focuses on the law’s effect on…

Eye on IBOR Transition

German Banking Association Releases Template IBOR Transition Agreement for Derivatives

By Patrick Scholl & Ann-Kathrin Balster

March 31, 2021

Today the German Banking Association (Bundesverband deutscher Banken – BdB) published its Supplementary Agreement for IBOR succession (Zusatzvereinbarung für IBOR-Nachfolgeregelung (IBOR-Zusatzvereinbarung)), a template agreement for the transition away from LIBOR under the German Master Agreement for Financial Derivatives Transactions (Deutscher Rahmenvertrag für Finanztermingeschäfte – DRV). The DRV is not covered by the ISDA 2020 IBOR Fallbacks Protocol. The BdB’s new template agreement does not provide for a protocol solution; rather, it provides for bilateral agreements…

Eye on IBOR Transition

FCA Announcement Helps LIBOR Transition for Derivatives to Pick Up Speed

By Edmund "Ed" Parker & Robyn Llewellyn

March 29, 2021

Various International Currency with World Leaders Portraits

What does the 5 March 2021 announcement by the UK Financial Conduct Authority on the future cessation or loss of representativeness of all 35 LIBOR benchmarks mean for the over 13,500 adherents to the ISDA 2020 IBOR Fallbacks Protocol and its fallbacks supplement? What does it mean for the counterparties using bilateral amendment agreements that incorporate the Fallbacks Protocol and Fallbacks Supplement? What does it mean for those counterparties that have entered into new derivatives…

Eye on IBOR Transition

Legislating LIBOR: New York State Poised to Enact LIBOR Transition Assistance Law to Facilitate “Tough Legacy” Contract Transition

By J. Paul Forrester, Mary Jo N. Miller & David K. Duffee

March 26, 2021

In a flurry of legislative activity on 24 March 2021, the New York State Senate and Assembly passed bills that, once signed by Governor Cuomo, will facilitate the transition from LIBOR of “tough legacy” contracts that are governed by New York law and that do not include adequate interest rate fallback provisions that contemplate a permanent cessation of LIBOR. Read the full Legal Update at mayerbrown.com.…

Eye on IBOR Transition

The Benchmark Bistro in the Export Finance Market

By Ashley McDermott

March 23, 2021

export finance - the word was printed on a metal bar. the metal bar was placed on several banknotes

UK Finance partner, Ash McDermott, provides a flavour of what is emerging in terms of benchmark alternatives as the end of LIBOR comes closer in his article, “What’s on the menu at the benchmark bistro?” for the 22 March 2021 edition of Berne Union’s The BUlletin.…

Eye on IBOR Transition

US FRB Issues Examiner Guidance for Assessing LIBOR Transition Progress

By Matthew Bisanz & J. Paul Forrester

March 11, 2021

On March 9, 2021, the US Board of Governors of the Federal Reserve System (“FRB”) issued SR 21-7, Assessing Supervised Institutions’ Plans to Transition Away from the Use of the LIBOR, providing guidance to its bank examiners on how to assess the progress of supervised institutions in preparing to transition away from U.S. dollar (USD) LIBOR as a reference rate.[1] This guidance is intended to complement the Interagency Statement on LIBOR Transition that…

Eye on IBOR Transition

IBA Sets LIBOR Publication Cessation Dates and Triggers a LIBOR Transition Event

By Mary Jo N. Miller, David K. Duffee & J. Paul Forrester

March 5, 2021

Happy New Year 2021 - Christmas Gold Blue Glitter

On 5 March 2021, ICE Benchmark Administration (“IBA”), the administrator of LIBOR, released the much anticipated feedback statement (“Cessation Statement”) reporting the results of its 4 December 2020 Consultation on Potential Cessation. IBA consulted on the issue of LIBOR publication cessation because “a majority of LIBOR panel banks had communicated to IBA that they would not be willing to continue contributing to the relevant LIBOR settings after [the proposed cessation] dates.” Pursuant to the…

Eye on IBOR Transition

US FRB Chair Powell Signals Support for Federal LIBOR Transition Assistance Legislation

By J. Paul Forrester, Matthew Bisanz & Mary Jo N. Miller

February 26, 2021

New year 2021 and 2020 on sandy beach with waves

In testimony on Wednesday, February 24, 2021 before the United States House of Representatives Committee on Financial Services, the Chairman of the Board of Governors of the Federal Reserve System, Jerome Powell, responded to questions regarding LIBOR transition from Representative Brad Sherman (D-CA), Chairman of the Investor Protection, Entrepreneurship and Capital Markets Subcommittee. Sherman had asked Powell: “In your view, is it necessary to have federal legislation to have a smooth transition after June 2023…

Eye on IBOR Transition

SEC Office of Municipal Securities Issue Staff Statement on LIBOR Transition

By Marlon Paz & Kyle P. Swan

February 23, 2021

US dollar currency up growth sky cloud concept

On January 8, 2021, the staff of the US Securities and Exchange Commission’s (“SEC”) Office of Municipal Securities (“OMS Staff”) issued a statement focusing on the impact of the discontinuation of LIBOR on the municipal securities markets. The statement highlights considerations for issuers of municipal securities and other “obligated persons” and municipal advisors to address the fact that the expected discontinuation of LIBOR “could have a significant impact on the municipal securities market and may…

Eye on IBOR Transition

What Do I Need to Do and By When? A Global LIBOR Transition Timeline

By David K. Duffee, Frederick C. Fisher, Jennifer A. Kratochvil & Mary Jo N. Miller

February 22, 2021

With 2021 in full swing, we have received a number of queries from our clients trying to sort out the competing recommended best practice milestones for preparing for the transition from LIBOR to alternative reference rates. To assist in this analysis, we have prepared a matrix—Summary of LIBOR Transition Recommendations for Key LIBOR Currencies—setting forth the recommendations for the major LIBOR currencies as proposed by the several global working groups and the Financial Stability Board.…

Eye on IBOR Transition

December 2021 Is In Sight

Blog Authors

The New York LIBOR Legislative Solution Becomes Law

German Banking Association Releases Template IBOR Transition Agreement for Derivatives

FCA Announcement Helps LIBOR Transition for Derivatives to Pick Up Speed

Legislating LIBOR: New York State Poised to Enact LIBOR Transition Assistance Law to Facilitate “Tough Legacy” Contract Transition

The Benchmark Bistro in the Export Finance Market

US FRB Issues Examiner Guidance for Assessing LIBOR Transition Progress

IBA Sets LIBOR Publication Cessation Dates and Triggers a LIBOR Transition Event

US FRB Chair Powell Signals Support for Federal LIBOR Transition Assistance Legislation

SEC Office of Municipal Securities Issue Staff Statement on LIBOR Transition

What Do I Need to Do and By When? A Global LIBOR Transition Timeline

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