In July 2017, the UK-based Financial Conduct Authority (FCA), which regulates LIBOR, announced that by the end of 2021, “it will no longer be necessary for the FCA to persuade or compel banks to submit LIBOR.” Since then, global regulators and banks have been eager to find replacements for LIBOR that can serve as a suitable benchmark rate across all major currencies. The switch to alternative rates is accelerating; however, there are many unknowns, which makes planning for the conversion both difficult and extremely important.

BRG professionals have been involved in LIBOR replacement efforts since the beginning of the transition conversation. We assist financial institutions and industry groups to drive solutions in both planning and execution related to this highly complex conversion to new benchmark rates.

BRG support services include:

  • Assist with standing up or maintaining ongoing program governance
  • Support formal transition planning
  • Start initial and/or support ongoing program and project management
  • Construct an initial (maintain ongoing) exposure analysis
  • Gather and investigate fallback language from legacy contracts
  • Investigate current uses of LIBOR within models
  • Remodel positions with alternative rates
  • Provide independent model validations
  • Assist in developing customer communication/reach-out
  • Provide accounting policy assistance for existing LIBOR hedging relationships
  • Provide insights on industry and ARRC developments
  • Analyze process changes for alternative rates.
  • Assist in implementing new process changes
  • Execute scenario analysis related to other alternative rates
  • Evaluate systems impacts/limitation with respect to alternative rate transition
  • Develop business requirements for potential system changes (i.e., compounding)
  • Project manage systems changes
  • Conduct user acceptance testing
  • Provide training and broader education
  • Assist in identifying software and artificial intelligence tools to support transition activities
  • Provide necessary subject-matter experts (SMEs) to augment company’s current efforts
  • Assist in addressing/responding to regulatory inquiries

Related Industries

Financial Services

Professionals

Related Contacts

Michael Canale

Managing Director

New York

Paul Noring

Managing Director

Washington, DC

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Brochure

LIBOR Transition Support Services

Multimedia

Financial Institution Advisory Services

June 2024

Publication

How to Handle Derivatives Close-Out Disputes

November 22, 2021

Publication

The LIBOR Transition Continues, but Is Asia Ready?

May 19, 2021

Event

"Zombie" LIBOR for USD Contracts: Navigating the Critical Issues

May 12, 2021

News

Availability of Tibor Makes Transition to RFRs Difficult in Japan

May 5, 2021

News

Corporates Prefer SOFR to Credit-Sensitive Rates

May 4, 2021

Event

LIBOR’s Sunset and AMERIBOR’s Dawn

April 28, 2021

News

LIBOR Transition Could Impact Your Credit Card Interest Rate

November 20, 2020
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