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ISDA has today published a statement summarizing the preliminary results of a consultation on pre-cessation issues for LIBOR and certain other interbank offered rates (IBORs).
The consultation on pre-cessation issues was launched in May, and sought comment on how derivatives contracts should address a regulatory announcement that LIBOR or certain other IBORs categorized as critical benchmarks under the EU Benchmarks Regulation[1] are no longer representative of an underlying market.
The full ISDA statement is available on the ISDA website.
This consultation follows a request by the Financial Stability Board’s Official Sector Steering Group (FSB OSSG) for ISDA to request comment on the events that should trigger a move to a spread-adjusted fallback rate for LIBOR.
ISDA hopes to publish additional information – including anonymized and aggregated responses to the consultation – in September.
View the preliminary results of the consultation on pre-cessation issues here.
