ARRC's Latest Recommendations (Jan 19, 2023)

So, following their Jan 19, 2023 meeting (see January 19 Meeting Readout (newyorkfed.org)), the US Alternative Reference Rates Committee (ARRC) has issued a reminder to market participants (see Alternative Reference Rates Committee: Key Messages (newyorkfed.org)). Nothing new, really just a reminder and a call to arms - #LetsGetAmending ! We are seeing movement across all our markets although some gathering momentum quicker than others - still a lot more to be done.

1. Take action now to remediate legacy contracts ahead of June 30, 2023. The action needed is to remediate contracts by moving off LIBOR so as to allow counterparties to set the terms of the LIBOR transition that best suit them, rather than needing to rely on fallback language or the LIBOR Act to set those terms (and of course, non-US law governed contracts won't benefit from the LIBOR Act).