Financial entities around the globe are rigorously preparing to transition away from the London Interbank Offered Rate (LIBOR) and other Interbank Offered Rates (IBORs), which are currently used in a significant number of financial instruments and products. It is expected that IBORs will be phased out for use as early as the end of 2021, in favor of more robust alternative reference rates (“ARRs”).
Given the current degree of uncertainty and complexity involved, the transition from IBORs to ARRs will be one of the biggest transformations the financial industry will undertake. BNY Mellon is committed to providing its clients and counterparties with key information and updates to help them navigate this transition.
BNY Mellon’s LIBOR Transition team:
LIBOR and other IBORs have been a cornerstone for the debt transactions of many financial institutions and corporations for decades.
Learn more about LIBOR, and key considerations that impacted entities should assess in preparation for the transition to ARRs.
Access our FAQs for preparing for benchmark rate reform.
The latest information from some of the key industry participants in LIBOR transition.
This joint event covered the continued importance of a timely transition from LIBOR, the need to move to robust alternative rates, and the “endgame” for LIBOR. It featured remarks by Bank of England Governor Andrew Bailey and New York Fed President John Williams.
The Alternative Reference Rates Committee (ARRC) released the “Internal Systems and Processes: Transition Aid for SOFR Adoption” to support market participants transitioning to the Secured Overnight Financing Rate (SOFR), the ARRC’s preferred alternative to U.S. dollar (USD) LIBOR.
Tough legacy contracts are considered those that do not have robust fallbacks and prove unable to be amended ahead of LIBOR discontinuation.
Follow these links for news and other resources from some of the key industry participants in LIBOR transition:
Learn more about key changes we are implementing across the Bank as we prepare for the full transition to alternative reference rates, including considerations that may help market participants successfully navigate these changes throughout the transition.
Asset Servicing Clients – CCP Discounting Transition to SOFR (PDF - 140 KB)
Asset Servicing Clients - €STR Discounting (PDF - 52 KB)
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