How robust fallbacks are hindering the Libor transition
By Thomas Helm
November 14, 2019, Practice Insight from IFLR
The received wisdom – and apologies to those who have already heard the oft-repeated analogy – is that robust fallbacks in derivatives contracts are like seatbelts. Good to have, but don’t depend on them. It is better not to crash the car in the first place.
However, the analogy is misleading for the simple reason that robust fallbacks are actually more like a magic button that transforms the car into a helicopter and enables the driver to fly over the scene of potential wreck.
-
European derivatives market valued at €735 trillion
-
MiFID II creates ‘existential threat’ for small research groups
-
E.U. regulator says MiFID II rules have failed on market data costs
-
Why Europe’s markets might need MiFID III
-
New data reveals the number of U.K. investment firms struggling with MiFID II reporting
