Compliance Monitor
The long and complex goodbye to LIBOR
Legacy contracts will create future litigation risks if a party suffers disadvantage owing to the move away from LIBOR to an alternative benchmark. Moreover, varied jurisdictional approaches could lead to regulatory arbitrage and uncertainty for market participants, reports Johnny Shearman.
Johnny Shearman is head of Knowledge and Legal Services at Signature Litigation. Contact him on johnny.shearman@signaturelitigation.com.
The transition away from the London Interbank Offered Rate (LIBOR) continues and, while progress has been made, parties still
face significant risks when dealing with legacy contracts as well as from the emergence of diverging approaches to the transition
across key jurisdictions. A failure to navigate these risks now may give rise to legal claims in the near future.