Article reports that market participants are reducing significant administrative tasks associated with LIBOR’s transition by compressing swaps and options contracts. “The compression method has become very attractive as a means of tearing up as many of these contracts as possible, because each one does come with a quantum of risk,” according to Alexander McDonald, CEO of EVIA. David Clark, chairman at the EVIA, warns against complete dependency on fallbacks. “The thing about the fallback is that it is a fallback, not a replacement [....] ISDA continues to do a crucial job in helping market participants to transition after the end of 2021, but it is not their responsibility to provide a replacement for LIBOR”
Article reports that for banks and major corporations transfer pricing is becoming a major issue following internal function reviews as part of the Libor transition preparations. According to EVIA’s Chairman, David Clark “transfer pricing is beginning to become a big issue for banks and major corporates. Internally you have a lot of transfer pricing, and this includes derivatives and balance sheet items”.
Oct-2019 Sep-2019 Aug-2019 Jul-2019 Jun-2019 Apr-2019 Mar-2019 Feb-2019 Jan-2019 Dec-2018 Nov-2018 Oct-2018 Sep-2018 Aug-2018 Jul-2018 Jun-2018 May-2018 Apr-2018 Mar-2018 Feb-2018 Jan-2018 Dec-2017 Oct-2017 May-2017 Apr-2017 Mar-2017 Feb-2017 Nov-2016 Oct-2016 Aug-2016 Jun-2016 May-2016 Apr-2016 Feb-2016 Jan-2016 Oct-2014 Sep-2013 Aug-2013 Jul-2013 Nov-2012 Aug-2012 Jul-2012 Jun-2012 May-2012