The swaps market is heading for a clash on the vital question of how contracts respond to the death of scandal-hit Ibor benchmarks, after participants in the euro market ignored guidelines laid down by international regulators, and diverged from the results of the market’s first consultation on four other swaps currencies. Any split in the choice of the so-called fallback – to replace an interbank offered rate (Ibor) when it stops being published – would undermine attempts to safeguard the Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content. To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact [email protected] to find out more. You are currently unable to copy this content. Please contact [email protected] to find out more.
The Working Group on European RFRs has reportedly deviated from the guidelines issued by international regulators on fallbacks for swaps, favouring a forward-looking term rate to replace term IBORs, which clashes with the results on the market’s first consultation on four other swap currencies.