Industry’s effort to introduce fallback benchmarks in derivative contracts that reference Libor rates is being monitored by the US Office of Financial Research for potential systemic risks, OFR Director Dino Falaschetti said.
“The Libor transition is in a lot of peoples’ eyes a critical risk,” he told the US House Financial Services Committee today. “My fallback language might not jibe with your fallback language. How long does that process take place, and where does that settle?”
Derivatives industry's transition from Libor-referenced contracts being tracked by US agency
26 September 2019 5:53pm