The International Swaps and Derivatives Association (ISDA) today announced the launch date for long-anticipated ISDA 2020 IBOR Fallbacks Protocol - 23 October 2020.

From that date:

  1. the IBOR Fallbacks Supplements will be formally incorporated in the 2006 ISDA definitions; and
  2. parties will be able to adhere to the IBOR Fallbacks Protocol to incorporate those fallbacks to pre-existing trades.

The Supplements and Protocol then take effect from 25 January 2021. Any derivative entered into subsequently using the 2006 ISDA Definitions will automatically fallback to the relevant substitute rate when the IBOR ceases and pre-existing contracts at that date will be amended in the same way, if the parties have adhered to the Protocol.

We expect most market participants to adhere to the Protocol - do let us know if we can assist you with that. 

Background information is available in the ISDA's "understanding IBOR Benchmark Fallbacks" document.