Linklaters advises ISDA as it publishes the ISDA 2020 IBOR Fallbacks Protocol
Linklaters has advised The International Swaps and Derivatives Association, Inc. (ISDA) which today finalized the IBOR Fallbacks Supplement to the 2006 ISDA Definitions and launched the ISDA 2020 IBOR Fallbacks Protocol. These documents enable trillions of dollars of derivatives contracts to be updated by including prescriptive fallbacks in the event of LIBOR discontinuation.
They represent the culmination of over four years of work and have been welcomed by regulators globally. A number of significant market participants have immediately adopted the terms of the Protocol. Adopting strong fallbacks in LIBOR linked contracts is necessary to mitigate systemic risk in the derivatives markets.
Deepak Sitlani, Derivatives partner at Linklaters, says:
“The launch of the ISDA 2020 IBOR Fallbacks Protocol is a hugely significant milestone in addressing LIBOR cessation. We’re delighted to have worked with ISDA, market participants and regulators to help bring this important mechanism to the market”.
The IBOR Protocol was developed by an ISDA working group that includes dealers, asset managers, institutional investors, funds and end users. For more information on interest rate reform see further information on https://www.linklaters.com/en/insights/publications/global-interest-rate-reform/global-interest-rate-reform.