Global benchmark survey 2018 transition roadmap

Global benchmark survey 2018 transition roadmap

ISDA, ICMA, AFME, SIFMA and SIFMA AMG have launched a roadmap highlighting the key challenges involved in transitioning financial market contracts and practices from interbank offered rates, or ‘IBORs’, to alternative risk-free rates (RFRs).

What is the background to the benchmark survey 2018 transition roadmap being published?

Interbank offered rates (IBORs) such as LIBOR, EURIBOR and TIBOR act as reference rates to many types of transaction. Benchmark reform initiatives however mean that the financial markets are starting to have to move away from reliance on the IBORs to select alternative nearly risk-free reference rates (RFRs) and are having to plan on how to successfully transition away from using IBORs to RFRs.

For more detailed information on the background to this, see news analysis: Replacing LIBOR: current position and implications for loan agreements.

In July 2017, Chris Salmon, executive director, markets at the Bank of England spoke to the Bank of England roundtable of sterling risk-free reference rates saying:

We do not underestimate the complexity of reducing the financial system’s LIBOR dependency. We are at the beginning of the process, and at this early stage the challenges are not all clearly in focus. That is why the engagement, help and support of the wider community of users of sterling interest rate benchmarks – issuers, investors, banks, as well as dealers – will be essential. The Working Group needs your help to identify the impediments to transition as you see them – and, equally, to identify where there are opportunities

In response to this, ISDA, AFME, ICMA, SIFMA and SIFMA AMG (together, the Associations) have published a roadmap. The intention is that this roadmap will raise awareness of some of the challenges to be solved as part of the transition plan and provide a central resource of information for benchmark transition across market sectors. The ideal end result for the Associations

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:

Meet Emma:

1.Banking and finance lawyer with experience in derivatives, debt capital markets, securitisation and structured finance in London and Paris

2.Likes ballet, playing the harp and holidays

3.Thinks the law is always changing!

Emma trained and qualified at Allen & Overy LLP and worked in their derivatives and structured finance teams in London and Paris.  She then joined the foreign exchange prime brokerage legal team at Deutsche Bank before spending 4 ½ years with Crédit Agricole CIB advising the fixed income and derivatives desk.