Industry Faces Transition Challenges

From April 1 onwards, sterling LIBOR cannot be sued in any new lending or other cash products that mature after the end of 2021 when RFR will be used. UK has chosen SONIA as the replacement rate Challenges still loom over the transition process. Capco, a management and technology consultancy, said that the lack of […]

ARRC Suggests USD LIBOR Fallback Formula

Only a fraction of the USD 27 trillion in derivatives pegged to the ten LIBOR have been switched to RFR with around nine months left until the cessation date of the benchmark. A further USD 150 billion in cash products will not mature until LIBOR expires Global regulators were considering creating a synthetic yen LIBOR […]

US-EU Joint Financial Regulatory Forum

The US Treasury, staffs of the US regulatory agencies, and staffs from independent regulator, including: the Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission, and SEC, exchanged views on topics of mutual interest with EU participants at the US-EU Joint Financial Regulatory Forum The Forum focused on many issues including regulatory […]

ARRC Suggests USD LIBOR Fallback Formula

In the newly issued white paper, the ARRC detailed a suggested fallback formula from the USD LIBOR ICE Swap Rate to a spread-adjusted SOFR Swap Rate. The fallback from the USD LIBOR ICE Swap Rate to a spread-adjusted SOFR Swap Rate is similar to a fallback used for Sterling LIBOR ICE Swap Rate The suggested […]

Challenge Looms for Yen LIBOR

Only a fraction of the USD 27 trillion in derivatives pegged to the ten LIBOR have been switched to RFR with around nine months left until the cessation date of the benchmark. A further USD 150 billion in cash products will not mature until LIBOR expires Global regulators were considering creating a synthetic yen LIBOR […]

ARRC Touts Option to Use Average SOFR

ARRC is prompting the use of a 30-day average SOFR in pricing securitizations. The industry working outlined that the 30-day average SOFR already incorporates beneficial aspects that make it a preferable alternative to USD LIBOR for some securitized products such as those bundling mortgages, student loans, and commercial loans ARRC also stressed that now is […]

Singapore Announces Transition Timelines

The Steering Committee for SOR & SIBOR Transition to SORA (SC-STS) has announced new timelines for Singapore’s transition to SORA as its main interest rate benchmark Under the new timeline, all financial institutions and their customers should cease usage of SORA in new derivatives contracts by end-September 2021, except for specified purposes relating to the […]