The transition from interbank offered rates (IBORs) to alternative reference rates remains high on the agenda of policy-makers and market participants. The UK Financial Conduct Authority announcement on March 5, 2021 on the timing for the cessation or loss of representativeness of all 35 LIBOR settings gave market participants a clear set of deadlines across all currencies and tenors. This announcement, along with other major upcoming developments in 2021, should significantly accelerate LIBOR transition efforts.
This paper examines several major developments in 2021 that have been announced and/or are expected to occur related to the adoption of replacement benchmarks such as risk-free rates (RFRs). It also reviews the significant progress made on the transition from LIBOR and other IBORs to RFRs in 2020.
Documents (1) for Adoption of RFRs: Major Developments in 2021
Latest
Why We Need Safe and Efficient SFT Markets
Securities financing transactions (SFTs) play a vital role in fostering liquidity, mobilizing collateral and supporting the smooth functioning of derivatives markets. But during periods of stress, secured funding markets often come under pressure just when they’re needed most, with reduced...
Response to BoE on Clearing Exemption for PTRR
On March 11, ISDA submitted a response to the Bank of England’s consultation on a proposed approach to exempting post-trade risk reduction (PTRR) transactions from the derivatives clearing obligation under Article 4 of the European Market Infrastructure Regulation (EMIR). ISDA...
IQ Interview with David Bailey
The Bank of England’s Prudential Regulation Authority recently finalized its Basel 3.1 framework for implementation at the start of 2027. David Bailey, executive director for prudential policy, talks to IQ about the importance of global consistency and the need to...
LSEG's TradeAgent Integrates ISDA DRR
ISDA has announced that LSEG has integrated ISDA’s Digital Regulatory Reporting (DRR) solution into its Post Trade Solutions business, TradeAgent, representing a significant milestone in the industry deployment of the ISDA DRR. The ISDA DRR converts an industry-agreed interpretation of...