The Working Group on Sterling Risk-Free Reference Rates has set the following key milestones dates in Q1, 2021:
- 18 January 2021 – deadline for responses to FCA consultations on its proposed powers under Articles 23A and 23D of the Financial Services Bill
- 25 January 2021 – amendments to ISDA 2006 Definitions and related protocol expected to take effect
- End-Q1 2021 – lenders and borrowers should have taken necessary steps to cease issuance of LIBOR-linked loan products that expire after end-2021
- End-Q1 2021 – market participants should be in a position to cease new issuance of LIBOR-linked bonds and securitisations, and initiation of new LIBOR-linked linear derivatives (except for the risk management of existing positions), where expiring after 2021
- End-Q1 2021 – market participants should have completed an assessment of all post-2021 contracts that can be actively converted and be in a position to accelerate the active conversion of cash products, where viable, to reduce the legacy volume of LIBOR
Is your organization ready for this complex transition? We are here to help!