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Ed Ivey article published by Futures & Derivatives Law Report

January 2021

MVA Financial Services Counsel Ed Ivey‘s article titled “Election Season Special: 2021 Candidates for LIBOR Replacement” was recently published in the Futures & Derivatives Law Report, a Thomson Reuters publication. The article provides a an overview and analysis regarding the various non-SOFR alternative reference rates, such as Ameribor, and issues related to the chances such rates have at being adopted and widely used in the market.
 
The article
Get excited. The next big election season is about to kick-off. The London Inter- bank Offered Rate (“LIBOR”) is going away, and despite the impact COVID-19 has had on the global market, the United Kingdom’s Financial Conduct Authority, with the support of the U.S. Federal Reserve, continues to stay committed to transitioning the market away from new LIBOR contracts by December 31, 2021. This sentiment was reaffirmed more recently following the announcement by the ICE Benchmark Administration (“IBA”), the administrator of LIBOR, that the IBA will consult on its intention to cease publication of the one-week and two-month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023 (but continuing to state that new LIBOR contracts must cease by the end of 2021. Will the new “rate” be SOFR, or will some other options, notably Ameribor and/or the Bank Yield Index, gain traction?
 
The complete article may be viewed below.