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.

News and Developments | Events



United States - General

ARRC Announces the Second Event in its Series “The SOFR Symposium: The Final Year”
Alternative Reference Rates Committee, 28 April 2021
The next event, on 11 May 2021, will address insights from the Official Sector Steering Group and SOFR, Term Rates, and Loan Market Developments.

Frequently Asked Questions
Alternative Reference Rates Committee, 27 April 2021
The updated FAQs include the effect of the 5 March 2021 announcements about the cessation of the publication of LIBOR.

Key Principles to Guide the ARRC as it Considers the Conditions it Believes are Necessary to Recommend a Forward-Looking SOFR Term Rate
Alternative Reference Rates Committee, 20 April 2021
Key principles include being rooted in a robust and sustainable base of derivatives transactions over time and having a limited scope of use.

Discussion Draft: Adjustable Interest Rate (LIBOR) Act of 2021
U.S. House of Representatives, 15 April 2021
A Bill to deem certain references to LIBOR as referring to a replacement benchmark rate upon the occurrence of certain events affecting LIBOR, and for other purposes.

United Kingdom – Floating Rate Notes and Bonds

Transition from LIBOR in Sterling Structured Products
Working Group on Sterling Risk-Free Reference Rates, 19 April 2021
Describing how a sterling structured products market based on a risk-free rate could potentially be designed using compounded in arrears SONIA, including considerations for transitioning existing GBP LIBOR structured products.

United Kingdom – Derivatives

Operational considerations for fallbacks in uncleared linear derivatives
Working Group on Sterling Risk-Free Reference Rates, 23 April 2021
Providing infrastructure and operational considerations to inform the planning and preparation by derivatives market participants for the operationalisation of fallbacks in non-cleared linear GBP LIBOR derivatives.

Spotlight Review: LIBOR Transition - Case studies for navigating conduct risks in back book transition
FICC Markets Standards Board, 20 April 2021
Back book transition covers long-dated derivative contracts and the need for parties to them to take steps before the end of 2021 to remove their remaining reliance on LIBOR benchmarks. This review provides practical guidance for market participants.

United Kingdom – General

Active transition of legacy GBP LIBOR contracts
Working Group on Sterling Risk-Free Reference Rates, 23 April 2021
Providing considerations intended to help market participants, across GBP bond, loan and derivative markets, assess and prioritise the active transition of legacy GBP LIBOR contracts to SONIA

Asia and Pacific Rim – General

Statement regarding Calculation and Publication of Production Rates for Term Reference Rates
Bank of Japan, 26 April 2021
QUICK Benchmarks Inc. began publishing production rates for Term Reference Rates (the Tokyo Term Risk Free Rate, or TORF) on 26 April. The rates, which can be used in actual transactions, also are available on the Interest Rate Benchmark Reform (Preparedness for the Discontinuation of LIBOR) page of the Bank of Japan's website.

Global - General

Transition to RFRs Review: First Quarter of 2021
International Swaps and Derivatives Association, 27 April 2021
The Transition to Risk-free Rates Review analyzes the trading volumes of over-the-counter and exchange-traded interest rate derivatives that reference selected alternative RFRs, including SOFR, SONIA, SARON, TONAR, €STR, and AONIA.



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.

LIBOR Transition: The IBOR Transition end game: the state of play in sterling loan markets
IBOR Transition Webcast Series, 29 April 2021 at 9:00 EDT
Mayer Brown Partner Ash McDermott and UK Finance LIBOR Transition Director Daniel Cichocki will discuss the impact of recent announcements and developments on market participants, including what lenders and borrowers should be planning to do for the remainder of 2021, the impact of recent announcements on market participants that may not be regulated in the UK, such as funds and international banks, and predictions for further transition developments in 2021.

LIBOR Transition: Assessing the post IBOR cessation US litigation risk landscape
IBOR Transition Webcast Series, 30 April 2021 at 9:00 EDT
Discussing the recent New York LIBOR legislation and analyzing some of the key litigation risks that the cessation of LIBOR presents in spite of such legislation.

IBOR Transition: Current Status of U.S. Federal Tax Guidance
Intelligize Webinar, 12 May 2021 at 11:00 EDT
Mayer Brown attorneys Thomas Humphreys and Brennan Young provide an overview of IBOR replacement under current federal tax guidance and discuss practical considerations in connection with various different types of financial instruments.