Jul 31, 2018
Cadwalader has been selected by the Federal Reserve’s Alternative Reference Rates Committee (ARRC) to assist in guiding the post-LIBOR financial world.
LIBOR, the London Interbank Offered Rate, is one of several “benchmark” interest rates used in over $400 trillion of financial transactions around the world, including derivatives, corporate and consumer loans, bonds and securitizations. Since 2012 global regulators have been concerned about the integrity of these benchmark rates. In the past year, global regulators and market participants have stepped up efforts to transition away from these benchmark rates and to replace them with new rates that are more liquid and transparent. The effort to replace LIBOR, which is generally expected to cease publication by the end of 2021, is being coordinated in the US by the Federal Reserve.
“It is ARRC’s responsibility to help the markets through a transition fraught with complex legal, economic and operational challenges,” said Cadwalader partner Lary Stromfeld, whose practice focuses on transactions, disputes and advisory matters involving a wide variety of financial products and complex financings. “We are honored to have been awarded this significant engagement with enormous global implications.”
“For Cadwalader,” he added, “this engagement is an endorsement of our market leadership in representing the International Swaps and Derivatives Association (ISDA) over the past seven years in connection with Dodd Frank as well as our market-leading strength in the securitization markets, which faces one of the greatest challenges arising from the LIBOR transition.”
Stromfeld led the Cadwalader team, with support from partners David Gingold, Steven Lofchie, Ivan Loncar, and Jeff Nagle; special counsel Assia Damianova; and associate Nihal Patel.
The Bank of England has initiated a review of its own exposure to LIBOR,
Scott Cammarn, Jonathan Watkins, Mark Chorazak, Aaron Lang
On 7 June 2019, Regulation (EU) 2019/876 (CRR II) was published in the Official Journal of the EU.