Welcome to the latest issue of Mayer Brown's IBOR Transition Digest—a periodic compendium of global regulatory and market developments and insights on the complex issues confronting financial market participants as they plan to transition from LIBOR and its variants to replacement benchmark interest rates. As attention to IBORtransition accelerates and becomes more focused, it is critical to have access to comprehensive and timely resources about the market.
For additional resources and an introduction to our global cross-practice IBOR Transition Task Force, please visit Mayer Brown's IBOR Transition portal.
News and Developments | Events
NEWS AND DEVELOPMENTS
United States – Derivatives
Commodity Futures Trading Commission, 8 June 2021
"To avoid the conduct and stability risks that emerged when LIBOR became disconnected from actual activity, we must rely on a benchmark that is both representative of transactions and proportional to the depth and breadth of products that rely upon it. SOFR demonstrates that fitness for the derivatives markets."
Alternative Reference Rates Committee, 8 June 2021
The ARRC encourages market participants to support the recommended transition dates set by the Commodity Futures Trading Commission, which would not only promote a smooth transition overall, but also would "demonstrate definitive progress on the ARRC's indicators to support its formal recommendation of the CME SOFR term rates."
Commodity Futures Trading Commission, 8 June 2021
The Market Risk Advisory Committee's Interest Rate Benchmark Reform Subcommittee recommends that on July 26, 2021 and thereafter, interdealer brokers replace trading of LIBOR linear swaps with trading of SOFR linear swaps, and that from July 26 until October 22, 2021, interdealer brokers' screens for LIBOR linear swaps be available for informational purposes, but not trading activity, after which those screens should be turned off altogether.
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