On January 25, 2021, the "Amendments to the 2006 ISDA Definitions to include new IBOR fallbacks" (the "IBOR Fallbacks Supplement") originally published by the International Swaps and Derivatives Association, Inc. ("ISDA") on October 23, 2020 became effective. The IBOR Fallbacks Supplement provides for fallbacks in the event of the permanent discontinuation of key interbank offered rates such sterling LIBOR, US dollar LIBOR, EURIBOR and CDOR.
Swaps and derivatives confirmations entered into from and including January 25, 2021 which incorporate the 2006 ISDA Definitions will be deemed to include the IBOR Fallbacks Supplement (unless the parties have otherwise agreed). By adhering to the ISDA 2020 IBOR Fallbacks Protocol (the "Protocol") published by ISDA on October 23, 2020, market participants can amend their confirmations which reference the 2006 ISDA Definitions (or certain other definitions booklets) and which were entered into prior to January 25, 2021 with counterparties who have also adhered to the Protocol in order to incorporate the IBOR Fallbacks Supplement.
Originally Published by Stikeman Elliott, February 2021
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