The International Swaps and Derivatives Association, Inc. (ISDA) has today published a statement summarizing the preliminary results of a consultation on pre-cessation issues for LIBOR and certain other interbank offered rates (IBORs).
The consultation on pre-cessation issues was launched in May, and sought comment on how derivatives contracts should address a regulatory announcement that LIBOR or certain other IBORs categorized as critical benchmarks under the EU Benchmarks Regulationare no longer representative of an underlying market.
The full ISDA statement is available on the ISDA website.
This consultation follows a request by the Financial Stability Board’s Official Sector Steering Group (FSB OSSG) for ISDA to request comment on the events that should trigger a move to a spread-adjusted fallback rate for LIBOR.
ISDA hopes to publish additional information – including anonymized and aggregated responses to the consultation – in September.