The new year is here and with it two important developments in
the derivatives markets for nonswap dealer clients to consider. The
first development is the market response to the looming
discontinuation of U.S. dollar LIBOR (and its equivalents in other
currencies). The second development relates to the documentation
requirements under the U.S. margin rules for uncleared swaps.
Do you have swaps that reference LIBOR?
If you have existing interest rate swaps or other types of
derivatives that are linked to LIBOR, then you may be required by
your dealer banks to update your documentation in 2020. As you may
be aware, global regulators have set a target date of the end of
2021 in order to transition from LIBOR to alternative reference
rates. Industry groups around the globe have been working with
regulators for some time to plan for this transition and adopt
recommended alternative reference rates. In the United States, the
applicable working groups have recommended
