ISDA Launches IBOR Fallbacks Protocol

The Internationals Swaps and Derivatives Association has launched its IBOR Fallbacks Supplement to the 2006 ISDA Definitions and 2020 IBOR Fallbacks Protocol. Both will become effective on January 25, 2021. The fallbacks provide alternative risk free rates to be used in place of discontinued or non-representative IBORs referenced in derivative contracts. The introduction of the Supplement means that all new derivative contracts entered into after January 25, 2021 will automatically reference definitions including the fallbacks. The Protocol entitles counterparties engaged in existing derivative contracts mutually to agree to incorporate the fallbacks into their contracts.
 
The Bank of England has signed up to the IBOR Fallbacks Protocol in respect of its activities as a market participant.
 
View ISDA's IBOR Fallbacks Supplement and Protocol.
 
View the BoE's announcement on adherence to the Protocol.
 
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