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.
Recent Congressional Hearing Indicates that Federal LIBOR Transition Assistance Law Increasingly Likely
Eye on IBOR blog, 19 April 2021
Testimony at a virtual hearing on Thursday, April 15, 2021, of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets of the US House Committee on Financial Services reinforced regulatory support for federal legislation to facilitate the transition from LIBOR.
Singapore Reiterates the Need for Active Transition to SORA
Eye on IBOR blog, 19 April 2021
The Singapore Steering Committee for SOR and SIBOR Transition to SORA has published a report providing guidance on new industry timelines to cease issuance of Singapore dollar Swap Offer Rate derivatives and Singapore Interbank Offered Rate-linked financial products.
The New York LIBOR Legislative Solution Becomes Law
Eye on IBOR blog, 9 April 2021
Once USD LIBOR ceases, Article 18-C would automatically change contractual USD LIBOR provisions to the ARRC recommended fallback provisions to SOFR. With the New York legislative solution now effective, similar federal legislation is advancing, which would address FRNs governing by non-New York law.
German Banking Association Releases Template IBOR Transition Agreement for Derivatives
Eye on IBOR blog, 31 March 2021
The German Banking Association has published its Supplementary Agreement for IBOR succession, a template agreement for the transition away from LIBOR under the German Master Agreement for Financial Derivatives Transactions. This new template agreement complements the previously published EONIA to €STR template agreement.
United States - General
ARRC Endorses Decision to Sign New York State LIBOR Legislation into Law
Alternative Reference Rates Committee, 7 April 2021
This new law addresses the issue of legacy contracts that mature after mid-2023 and do not have effective fallbacks.
Asia and Pacific Rim – General
Update on "Roadmap to Prepare for the Discontinuation of Japanese Yen LIBOR"
Bank of Japan, 16 April 2021
The Japanese Yen Interest Rate Benchmarks Working Group has updated the Roadmap to Prepare for the Discontinuation of Japanese Yen LIBOR to add a transition plan for interest rate swaps referencing JPY LIBOR and maturing after the end of 2021, based on the Report of the Subgroup for the Development of Term Reference Rates, dated 26 March 2021.
New Timelines to Cease Issuance of SOR Derivatives and SIBOR-Linked Financial Products
Association of Banks in Singapore, 31 March 2021
The Steering Committee for SOR & SIBOR Transition to SORA has published a report announcing new industry timelines to cease issuance of SOR- and SIBOR-linked products by the end of September 2021.
Global - General
Adoption of RFRs: Major Developments in 2021
International Swaps and Derivatives Association, 12 April 2021
Examining several major developments in 2021 that have been announced or are expected to occur related to the adoption of replacement benchmarks, as well as significant LIBOR transition progress made during 2020.
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. Listen to one of our most recent webcasts again:
An Update for Derivatives
IBOR Transition Webcast Series, 15 April 2021
Discussing the impact of recent IBOR transition developments for derivative based products. This presentation, including accompanying slides, also is available on YouTube.
Ambiguity and Confusion Surround the End of LIBOR
IBOR Transition Webcast Series, 7 April 2021
Reflecting on the recent IBA and FCA announcements on the cessation of LIBOR and introduced the topics of “synthetic LIBOR,” 2021 fallback language, and the documentation of SOFR loans.