ISDA, AFME, ICMA, SIFMA and SIFMA AMG have today launched a roadmap that aggregates and summarizes existing information published by regulators and various public-/private-sector risk-free rate (RFR) working groups on the work conducted to date towards transitioning financial products and practices from certain interbank offered rates (IBORs) to the selected RFRs. The roadmap is designed to provide a single point of reference for those interested in understanding more about the motivation behind the initiative and some of the key challenges to be addressed.

Scope and Market Footprint

The roadmap covers LIBOR and certain other IBORs denominated in five currencies: euro, sterling, Swiss franc, US dollar and yen. Based on publicly available data, the roadmap notes that total outstanding notional exposure to the IBORs has been estimated at over $370 trillion. Derivatives, syndicated loans, securitizations, business and retail loans, floating-rate notes (FRNs) and deposits are all significantly exposed to LIBOR and other IBORs.

Next Steps: Global Industry Survey and Report

The roadmap is the first part of a comprehensive analysis of the issues and potential solutions related to transitioning from IBORs for a wide spectrum of financial instruments. The associations are also initiating a global survey of buy- and sell-side firms and infrastructure providers, which will feed into an in-depth report aimed at supporting interest rate benchmark transition planning efforts.

Please click on the PDF below to read the full roadmap.