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
United Kingdom – Syndicated and Bilateral Loans
Updated GBP loan market Q&A for the
Working Group's end-Q1 2021 recommended
milestones
Bank of England, 4 June 2021
Update includes a new question 8 about how the Q1
milestone affects existing facilities with extension options.
Updated Best Practice Guide for GBP
Loans
Bank of England, 4 June 2021
Update addresses calculating SONIA-based cost of carry for
loans traded on the secondary market.
United Kingdom – Derivatives
The FCA and the Bank of England encourage
market participants in a switch to SOFR in US dollar interest rate
swap markets from 26 July
Financial Conduct Authority and Bank of England, 16 June
2021
Reporting the results of an FCA survey of market
participants and noting, "In line with the MRAC
Subcommittee's recommendation, the FCA and the Bank of England
support and encourage all participants in the interdealer US dollar
interest rate swaps market to take the steps necessary to prepare
for and implement these changes to market conventions on 26 July
and shift liquidity away from USD LIBOR to SOFR."
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