This white paper examines the impact of the transition away from Interbank Offered Rates (IBORs), particularly LIBOR, on the global derivatives market. As regulators and market participants prepare for a post-LIBOR environment, the report explores key developments, implementation challenges, and the adoption of alternative reference rates. The transition requires significant changes to derivative contracts, valuation models, risk management frameworks, and operational processes. The report also discusses fallback mechanisms designed to ensure contract continuity and analyzes how the COVID-19 pandemic affected transition timelines and fallback calculations. As LIBOR-based transactions phase out, financial institutions must adapt to new benchmark rates while maintaining regulatory compliance

Join for free to read