ISDA recently closed it second consultation on technical adjustments to fallback rates and is working on finalising and implementing the proposals. An analysis of the feedback and further questions soliciting feedback on open issues will be published in October . By year end , the trade association expects to complete work on amendments to its definitions of 3-Aug-19 IBORs that have been subject to consultation so far. It said it would develop a protocol to enable firms to adapt legacy derivatives contracts. A consultation on adjustments to the fallback for euro LIBOR and EURIBOR will take place after ESTR is published in October . Given the adjusted fallback will not match the relevant IBOR exactly – meaning there will be winners and losers if the fallback is triggered – voluntary adoption of RFRs before any permanent cessation of an IBOR will be the preferable route for many. While trading volumes in products linked to RFR are picking up as progress is made developing liquid alternative to IBORs, ISDA said much work remains. It warned that adjusted fallbacks would not precisely match the relevant IBORs, resulting in winners and losers in the event that the fallback is triggered, and added that many would likely favour the route of adopting RFRs voluntarily ahead of the expiry of an IBOR. Relevant document: ISDA Quarterly ~ ISDA ~ nine
ISDA recently closed it second consultation on technical adjustments to fallback rates and is working on finalising and implementing the proposals. An analysis of the feedback and further questions soliciting feedback on open issues will be published in October . By year end , the trade association expects to complete work on amendments to its definitions of 3-Aug-19 IBORs that have been subject to consultation so far. It said it would develop a protocol to enable firms to adapt legacy derivatives contracts. A consultation on adjustments to the fallback for euro LIBOR and EURIBOR will take place after ESTR is published in October . While trading volumes in products linked to RFR are picking up as progress is made developing liquid alternative to IBORs, ISDA said much work remains. It warned that adjusted fallbacks would not precisely match the relevant IBORs, resulting in winners and losers in the event that the fallback is triggered, and added that many would likely favour the route of adopting RFRs voluntarily ahead of the expiry of an IBOR. Relevant document: ISDA Quarterly ~ ISDA ~ nine