Sign up to fallback protocol or face ‘serious questions’, FCA warns
UK regulator urges derivatives users to accept Isda swap fallbacks to ensure compliance with benchmark law
A senior UK markets regulator has warned derivatives users to expect “serious questions” if they choose not to adopt fallback language currently being developed by the industry to future-proof legacy Libor-linked derivatives against the benchmark’s anticipated demise.
Swaps fallbacks, once finalised, would re-hitch outstanding Libor-linked instruments to successor rates such as Sonia on the discredited benchmark’s discontinuation. The clauses will be inserted into legacy contracts en masse via
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