ISDA publishes IBOR Fallbacks Supplement and Protocol

On 23 October 2020, ISDA published its IBOR Fallbacks Supplement to the 2006 ISDA Definitions (Supplement) and IBOR Fallbacks Protocol (Protocol) to assist market participants to manage the transition away from LIBOR. The Supplement amends the rate options in the 2006 Definitions to include fallback rates for the five LIBORS and certain other IBORs, with the changes to come into effect on 25 January 2021. The Protocol, which also takes effect on 25 January 2021, provides a mechanism for market participants to amend existing IBORs-referencing ISDA agreements to incorporate fallback language by signing and uploading a specified form of adherence letter onto the ISDA Protocol system. The adherence letter is intended for use without negotiation so as to streamline the amendment process for ISDA agreements covered under the Protocol.

Alongside the Supplement and the Protocol, ISDA also published an FAQ to ISDA IBOR Fallbacks Protocol and a set of bilateral forms for IBOR fallbacks. For more information, please see here.