The launch of the Protocol and the Supplement represents a key landmark in the transition away from IBORs but is not a one-stop solution.

Key Points:

..The Protocol and the Supplement, which take effect on January 25, 2021, provide robust fallback provisions to be applied upon the permanent cessation of a relevant IBOR or a pre-cessation announcement made with respect to LIBOR.

..The Protocol provides an efficient amendment mechanism for mutually adhering counterparties to incorporate these fallback provisions into legacy contracts.

..The Protocol and the Supplement do not themselves modify the terms of underlying floating rate exposures or ensure such exposures transition in the same manner as any interest rate derivatives entered into to hedge those exposures.

..Market participants should work closely with counsel and financial advisors to ensure that they understand the role and impacts of the Protocol and the Supplement within their overall IBOR transition strategy.