January 14, 2021

IBOR Transition Digest


Welcome to the latest issue of Mayer Brown’s IBOR Transition Digest—a periodic compendium of global regulatory and market developments and insights on the complex issues confronting financial market participants as they plan to transition from LIBOR and its variants to replacement benchmark interest rates. As attention to IBORtransition accelerates and becomes more focused, it is critical to have access to comprehensive and timely resources about the market.

For additional resources and an introduction to our global cross-practice IBOR Transition Task Force, please visit Mayer Brown’s IBOR Transition portal.

New IBOR Transition Tool | Thought Leadership | News and Developments | Events



IBOR Transition Readiness Survey
Mayer Brown IBOR portal, Introduced 17 November 2020
Our latest IBOR transition resource, an IBOR transition readiness survey jointly developed and presented with Morae Global, helps organizations address the complex and imminent issue of IBOR transition, with follow up guidance and checklists.



Update on the Proposal for a Governmental IBOR Transition in the European Union
Eye on IBOR Transition Blog, 14 January 2021

Following the discussion and status set out in our September 2020 blog post, Proposal for a Governmental IBOR Transition in the European Union, the proposed amendment to the EU Benchmark Regulation (“BMR”) has been developed further and a consolidated version published reflecting the text agreed by the Council of the European Union and the European Parliament.



United Kingdom – General

The final countdown: Completing sterling LIBOR transition by end-2021
Working Group on Sterling Risk-Free Reference Rates, 11 January 2021
A statement from the Sterling Working Group highlighting key LIBOR transition priorities for 2021, and announcing that the group is working on developing “a market standard for appropriately limited use of term SONIA reference rates” consistent with the Working Group’s objectives and existing Use Case guidance.

Updated Top Level Priorities – 2021
Working Group on Sterling Risk-Free Reference Rates, 11 January 2021
Updated recommendations for the final year of GBP LIBOR transition, including that GBP LIBOR no longer be used after March 2021.

Bowing out gracefully: LIBOR’s retirement draws near
Working Group on Sterling Risk-Free Reference Rates, 8 December 2020
In this speech at a Risk.net LIBOR Telethon, Bank of England Executive Director for Markets, Andrew Hauser, highlights three key LIBOR transition actions for market participants (stop using LIBOR, adopt ISDA’s fallbacks protocol, and reduce legacy contract volume) and notes, “[LIBOR] is now well and truly in need of retirement. The unsecured term interbank lending markets it seeks to measure barely trade, even in calm conditions. And when things get rocky, they don’t trade at all….”

Europe – General

Third roundtable on euro risk-free rates
European Central Bank, 14 December 2020
Links to recordings of all Roundtable presentations. Program topics include regulatory and supervisory perspectives on interest rate benchmark reform, and a Q&A session on the outstanding EURIBOR consultations.

Asia/Pacific Rim – Syndicated and Bilateral Loans

TONA (Fixing in Arrears) Conventions to Use in Loans
Bank of Japan, 25 December 2020
Providing loan conventions and examples based on a consultation with members of the Sub-Group on Loans reflecting primarily the “Lookback Without Observation Shift” approach but also illustrating other approaches, and summarizing responses relating to rate publication and calculators.

Asia/Pacific Rim – General

Roadmap to Prepare for the Discontinuation of LIBOR
Bank of Japan, 30 November 2020
Key milestones are set forth for systems and infrastructure, loan and bond products, and the development of term reference rates, as well as contract negotiations and the cessation of the use of JPY LIBOR.



Replays of all of our IBOR Transition Webinar Series presentations are available via iTunes podcasts, Google play or Spotify, as well as on the IBOR Transition Webinar Series page of our dedicated IBOR Transition portal.

REVERSEinquiries Workshop: ISDA 2020 IBOR Fallbacks Protocol
Webinar, 21 January 2021
Mark your calendars: January 25, 2021 is the implementation date of the ISDA 2020 IBOR Fallbacks Protocol. In an effort to be fully prepared, join us for an updated discussion on the features of the protocol and its underlying document template, as well as issues such as adherence to the protocol and final timing milestones. We will analyze the protocol and answer the following questions: 

  • What are the implications for loans and their hedges, structured products, repos, stock lending, non-standard transactions and other cash instruments?
  • Who are the adherents to the protocol, and who is not adhering?
  • Which agreements are in scope and out of scope under the protocol?
  • What are the key issues for “tough legacy” transactions.

Additionally, we will discuss LIBOR cessation, its timeline, and understanding what is to come post-implementation.

Stay Up To Date With Our Insights

See how we use a multidisciplinary, integrated approach to meet our clients' needs.