ARRC Releases Best Practices For Orderly LIBOR Transition

On May 27, 2020, the Alternative Reference Rates Committee ("ARRC")¹ published recommended best practices for preparing for the end of USD LIBOR (the "Best Practices").² The Best Practices aim to provide appropriate target milestones and timelines to minimize market disruption for the end of USD LIBOR.³ The Best Practices are a significant statement, particularly for market participants in the United States, as they establish baseline views for both regulators and market participants. The ARRC acknowledges in the Best Practices that its guidance is subject to contingencies and other regulatory actions; however, in the absence of any statement from the United Kingdom Financial Conduct Authority ("FCA"), ARRC recommends that market participants continue to assume that USD LIBOR will cease as of December 31, 2021 and the Best Practices work on that assumption.