ISDA has today published a statement summarizing the preliminary results of a consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (IBORs).
The consultation, which was launched in July, covered the proposed methodologies for certain adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued. The full ISDA statement is available on the ISDA website, along with additional information about the consultation.
“The development of robust contractual fallbacks for derivatives that reference LIBOR and other key IBORs is critical to ensure financial stability in the event an IBOR ceases to exist. We are very pleased with the breadth of responses for our consultation,” said Scott O’Malia, ISDA Chief Executive.
ISDA intends to publish additional information – including an anonymized and aggregated summary of responses to the consultation – by the end of December.
The preliminary results are available at https://www.isda.org/2018/11/27/isda-publishes-preliminary-results-of-benchmark-consultation/