ISDA today announced the results of its consultation on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and the US dollar LIBOR ICE Swap Rate.
It found that a "significant majority" of respondents agreed with the fallback provisions set out in the draft amendments attached to the consultation. These amendments implement the fallbacks suggested by the Working Group on Sterling RFRs and the ARRC.
Respondents to the consultation "satisfied the criteria specified in the consultation for ISDA to publish a Supplement to the 2006 ISDA Definitions to incorporate the sterling LIBOR ICE Swap Rate fallback provisions and a Supplement to incorporate the US dollar LIBOR ICE Swap Rate fallback provisions, as well as template language that counterparties could use to negotiate bilateral amendments for incorporation of the amended terms in legacy derivative contracts."
A report analysing the consultation results will be available in the coming weeks.
ISDA will also begin finalising the amendments to implement fallbacks for the sterling LIBOR ICE Swap Rate as soon as possible and will finalise the amendments to implement fallbacks for the US dollar LIBOR ICE Swap Rate when a SOFR swap rate is published in a form that can be referenced in financial instruments.