LIBOR Cessation: ISDA Launches IBOR Fallbacks Supplement And ISDA 2020 IBOR Fallbacks Protocol

On October 23, 2020, the International Swaps and Derivatives Association, Inc. ("ISDA") launched the IBOR Fallbacks Supplement to the 2006 ISDA Definitions (the "Supplement") and the ISDA 2020 IBOR Fallbacks Protocol (the "Protocol") to address the expected permanent cessation of U.S. Dollar LIBOR ("USD LIBOR") and several other interbank offered rates (together with USD LIBOR, the "Relevant IBORs") at the end of 2021.¹ The Supplement introduces specified cessation events for each Relevant IBOR and specified fallback rates that apply to new contracts following cessation of each Relevant IBOR, while the Protocol allows market participants to amend existing contracts by incorporating the revised definitions in ISDA Master Agreements, repurchase agreements and other trading documentation referencing Relevant IBORs. The Supplement and the Protocol will become effective on January 25, 2021.