The co-chairs of the FSB OSSG have written to ISDA encouraging further work to improve the contractual robustness of derivatives ahead of the discontinuation of LIBOR. The group warned that current and proposed trigger events could leave those with LIBOR-linked contracts still exposed to a number of risks. OSSG said it supported ISDA’s plans to consult on USD LIBOR and other key IBORs in early 2019 and sought to clarify the timing. The letter also called for the addition of other trigger events and details of governance and transparency surrounding ISDAs final decision process. In its latest quarterly report, published today, the Bank of England has outlined how it will continue to monitor developments around Libor as part of an ongoing review into the impact of changes made by central banks
The co-chairs of the FSB OSSG have written to ISDA encouraging further work to improve the contractual robustness of derivatives ahead of the discontinuation of LIBOR. The group warned that current and proposed trigger events could leave those with LIBOR-linked contracts still exposed to a number of risks. OSSG said it supported ISDA’s plans to consult on USD LIBOR and other key IBORs in early 2019 and sought to clarify the timing. The letter also called for the addition of other trigger events and details of governance and transparency surrounding ISDAs final decision process. Relevant Document: Letter from FSB to ISDA 12-Mar-19