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Spotlight on the ISDA July 2018 consultation on benchmark fallbacks

We have now made available on our website a video interview with Neil McLeod, Head of Group Treasury Markets Trading at Erste Group Bank AG, which considers the ISDA consultation on IBOR fallbacks published in July 2018.

ISDA is amending its standard documentation to implement fallbacks for certain key IBORs. The fallbacks will be to the risk-free rates (RFRs) that have been identified for the relevant IBORs. The consultation paper seeks input on the approach for addressing certain technical issues associated with adjustments that will apply to the RFRs if the fallbacks are triggered. The interview discusses, amongst other things: (i) what the adjustments are designed to achieve; (ii) the importance of the consultation to all market participants; (iii) the proposed approaches to term and spread adjustments; and (iv) next steps.

Whilst the ISDA consultation is focused on derivatives, any outcomes could impact the cash markets either directly or indirectly. It will be important for institutions to review the consultation and come to their own view as to the suitability of the options outlined in it

Click here to access the ISDA consultation documents.

This video interview, filmed in September 2018, is the latest in a series of LMA Spotlights on key regulatory and topical issues.


This video does not constitute an advice, offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

The information contained in this video has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.

Certain statements contained in this video may be statements of future expectations and other forward-looking statements that are based on current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

None of Erste Group or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this video or its content or otherwise arising in connection with this video.