A key aspect of this is the adoption of fallbacks. While these are an important part of the LIBOR transition, they also should be in place for a much wider range of financial contracts, including those that reference BBSW. The end of LIBOR The end of LIBOR is a certainty.
It is critical that Australian institutions – both sell-side and buyside – are ready for this by no later than the end of 2021. Institutions need to have done one of two things. They can transition away from LIBOR by using alternative reference rates. Or, for contracts where that’s not possible, they can ensure that robust fallback provisions are in place.