The impending shift from IBOR impacts many aspects of the buy-side’s businesses to varying degrees. For example, in a recent report on the impact of the change on its business, IBM said that it expects “significant changes for our business and industry.” However, asset managers could benefit from the transition if they treat it as an opportunity to drive standardisation in contracts and fallback language, according to SIX Group’s Christian Bahr.
The impending shift from IBOR impacts many aspects of the buy-side’s businesses to varying degrees. Contracts involving multiple counterparties present one of the bigger challenges, requiring difficult renegotiation, which, if not addressed, could result in contracts becoming unviable. However, asset managers could benefit from the transition if they treat it as an opportunity to drive standardisation in contracts and fallback language, according to SIX Group’s Christian Bahr.