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June 04, 2021
Cadwalader Financial Services partner Lary Stromfeld yesterday participated on a panel at the International Swaps and Derivatives Association (ISDA) Benchmark Strategies Forum.
Stromfeld participated on the panel titled "A Legislative Approach," which focused on the various legislative efforts underway in the EU, UK and the U.S. to address LIBOR transition. He was joined by co-panelists Tilman Lüder, Head of Securities Markets, DG FISMA, European Commission; Vinay Reddy, Capital Markets Consultant, Linklaters LLP; and Tamsin Rolls, Executive Director and Assistant General Counsel, J.P. Morgan. The panel was moderated by Rick Sandilands, Senior Counsel, Europe, ISDA.
As each jurisdiction takes a different approach, the panel noted that this can create the possibility of confusion and, in some cases, conflicting treatment of contracts.
For his part, Stromfeld spoke on the law enacted in April by the State of New York, which Cadwalader developed as counsel to the Alternative Reference Rates Committee (ARRC,) and which serves as a model for Federal legislation being sponsored in Washington, D.C.
“A legislative solution to LIBOR transition should be the last resort as a strategy for any market participant,” Stromfeld said. “Remediation of contracts with inadequate fallback provisions in advance of LIBOR ending presents far fewer risks and allows for a more orderly transition.”