CAPITAL MARKETS -

ISDA Publishes Two Consultations on Benchmark Fallbacks -

On 16 May, ISDA launched two new consultations on benchmark fallbacks. One covers adjustments that would apply to fallback rates in the event certain interbank offered rates (IBORs) are permanently discontinued, and the other relates to pre-cessation issues for LIBOR and certain other IBORs. The first consultation sets out options for adjustments that will apply to the relevant risk-free rates (RFRs) if fallbacks are triggered for derivatives referencing US dollar LIBOR, Hong Kong’s HIBOR and Canada’s CDOR. Feedback is also sought on a proposed fallback for Singapore’s SOR following a permanent cessation of US dollar LIBOR, given US dollar LIBOR is currently used as an input to calculate the Singapore rate.