On Jan. 25, 2021, the International Swaps and Derivatives Association Inc. (“ISDA”) issued a press release stating that its new fallbacks for derivatives linked to key interbank offered rates (including USD LIBOR) took effect on Jan. 25, 2021. The fallbacks will be incorporated into all new derivatives contracts that reference ISDA’s standard interest rate derivatives definitions. They will also be included in legacy non-cleared derivatives if the counterparties have bilaterally agreed to include them or both have adhered to the ISDA IBOR Fallbacks Protocol.
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