FMLC CEO Joanna Perkins gave a speech at Infoline’s Risk Free Rate conference on navigating the transition to a Risk Free Rate. She provided an overview of the Financial Stability Board’s review of interest rate benchmarks and the development of new RFRs in various jurisdictions, the FCA’s announcement that it would cease to support LIBOR after 2021 and the legal risks associated with a transition from LIBOR to an RFR. She concluded by identifying solutions to smooth the transition of the bulk of legacy contracts.
In an article for Butterworth’s Journal of International Banking and Finance Law, Dr Perkins and Jennifer Enwezor, former Project Manager at the FMLC Secretariat, examine the difficulties in the transition from IBOR benchmarks to alternative risk-free rates (“RFRs”). They consider the question asked frequently in relation to the LIBOR transition—whether the move from a single calculation methodology to multiple methodologies in multiple jurisdictions will have significant negative impact—and determines that it is likely to be less of an obstacle than market discussions would suggest.
FMLC CEO Joanna Perkins gave a speech at the 2018 P.R.I.M.E. Annual Conference introducing technologies which have the potential to change the structure of financial markets—such as algorithms, co-location, machine learning and the Cloud—and providing an overview of the legal and regulatory challenges posed by innovation .
Her slides and speaking notes are available below.