Get Ready for the Transition from LIBOR

Due to international efforts to reform the use of benchmarks, LIBOR (London Interbank Offered Rate) will be replaced in 2021, impacting agreements worth hundreds of trillions of dollars, including derivatives, loans, and other financial products.

LIBOR will be replaced in 2021

The impact of LIBOR's replacement will be significant and wide reaching.

Financial market participants are accelerating their efforts to transition from LIBOR to alternative reference rates, putting strain on internal teams who face hiring freezes, increasing work streams, and tightening project budgets due to a volatile market. 

Get LIBOR preparation help now
 

The transition from LIBOR will be challenging


  • The reform may be applied differently depending on jurisdiction, and divergent views on what actions to take will emerge. In-house teams will need ready, flexible talent to implement these changes

  • The deadline, outcome, and timetable are not set in legislation, creating a lack of industry focus. Legal teams must advise on LIBOR while responding to business needs

  • Companies must take a cross-functional response and put transition teams in place, including legal, operations, IT, and pricing. Legal teams must prepare in advance for the rush on talent while fulfilling their program obligations

“We can see it coming, and we know the impact of a disorderly transition would be huge. Therefore, a half-hearted effort or a failure to act would be inexcusable…”
William C. Dudley Former President and Chief Executive, Federal Reserve Bank of New York

Prepare for the end of LIBOR with a trusted partner

Get support
  • Monitor updates from regulatory bodies and trade associations
  • Update policies and procedures
  • Advise on fallback language and new product development
  • Conduct contract review and extraction for benchmark provisions and fallback language
  • Conduct quality control/quality assurance review for extracted terms
  • Assess exposure across asset classes
  • Develop playbooks
  • Determine amendment strategy
  • Conduct negotiations and amend transactions

Prepare for the end of LIBOR with a trusted partner

Advisory and regulatory support
  • Monitor updates from regulatory bodies and trade associations
  • Update policies and procedures
  • Advise on fallback language and new product development
Contract review, extraction, and assessment
  • Conduct contract review and extraction for benchmark provisions and fallback language
  • Conduct quality control/quality assurance review for extracted terms
  • Assess exposure across asset classes
Contract amendment and negotiation
  • Develop playbooks
  • Determine amendment strategy
  • Conduct negotiations and amend transactions

Why Axiom?

Axiom lawyers already support the transition from LIBOR at over 20 leading financial institutions. Our clients have engaged Axiom lawyers to work on every regulatory change in the financial services sector since 2008.

Access world-class LIBOR-ready talent
150+ legal professionals with LIBOR experience

Build the right team
600+ financial services lawyers to backfill your in-house team as they’re tapped to handle LIBOR

Work with a partner who understands your business
Axiom lawyers hit the ground running to help you meet the LIBOR deadline


 

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Glenn Gardner

Assisting a major financial institution on its regulatory reform “was one of the most exciting and enriching experiences I’ve had in my whole 18 years of practicing. The combination of diverse backgrounds made for fertile collaboration as each brought their own expertise.”

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