As part of a roundtable hosted by ISDA, senior policy-makers and market participants described continuing efforts to support firms that have yet to transition from LIBOR to new benchmark rates, and raised ongoing challenges posed by legacy contracts and "synthetic" LIBOR.
The following topics were discussed:
- UK Financial Conduct Authority Director of Markets and Wholesale Policy Edwin Schooling Latter addressed issues relating to the role of "synthetic" LIBOR;
- James von Moltke, Deutsche Bank Chief Financial Officer and Chair of the Working Group on Euro Risk-free Rates raised the prospect of a legislative solution for transition from EONIA to €STR;
- Nathan Wuerffel, Federal Reserve Bank of New York, Head of Domestic Markets Group discussed the U.S. regulatory push to use of SOFR and other benchmarks that might be significant;
- Tom Wipf, Morgan Stanley Vice Chairman of Institutional Securities and Chair of the Alternative Reference Rates Committee highlighted the effect of the "SOFR First" initiative and other issues for the U.S. benchmark landscape in 2022; and
- Arthur Yuen, Hong Kong Monetary Authority Deputy Chief Executive noted progress in Asia on the LIBOR transition.
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