In our blog post of February 11, 2020, we discussed ISDA’s re-consultation on pre-cessation triggers following the announcement by the Financial Conduct Authority that there is a possibility that LIBOR may continue to be published for a short period after regulators have announced that it is no longer representative of the underlying market (a non-representative LIBOR).

ISDA announced the preliminary results of this re-consultation on April 15, 2020. The initial results indicate that a significant majority of respondents are in favour of including both pre-cessation and permanent cessation triggers in the amended 2006 ISDA Definitions and in a single protocol for including the updated definitions in legacy trades.

It should be noted that the results are preliminary and subject to further analysis but it is unlikely that they will change. ISDA, therefore, expects that the amended 2006 ISDA Definitions will include pre-cessation triggers following a ‘non-representativeness’ determination and permanent cessation triggers for all derivatives contracts referencing LIBOR that incorporate the amended 2006 ISDA Definitions.

Watch for further McGuireWoods client alerts as ISDA expects to publish a final report analysing the consultation results in the coming weeks, along with information on their next steps. For more information, please contact the McGuireWoods London debt finance team.