ISDA fallback boost gives needed spur to Ibor transiton

By Ross Lancaster
15 Oct 2020

The International Swaps and Derivatives Association broke ground earlier this month in Libor transition when it the US Department of Justice approved its derivatives fallbacks. Market participants now face a busy few weeks working out if the protocol fits their differing needs.

The DoJ’s approval allows market participants to incorporate ISDA’s fallbacks into their Libor-referencing derivatives. Most legacy contracts contain fallbacks, but these were designed for a situation when Ibors were temporarily available and an alternative was needed for a short period of time. For permanent expiration, more robust support ...

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