The transition away from LIBOR to the five selected alternative benchmark rates is underway, albeit at differing paces. In this new infographic we provide an update on progress each rate has accomplished on its path to the 2021 deadline, believing it is important for firms to have an understanding of where the alternative rates stand today, as it will be vital to be knowledgeable, astute and nimble when operating within the transition challenge.

Significant progress has been made to date for most rates—with Reformed SONIA (Sterling Overnight Index Average), the replacement for GBP LIBOR, making the most advances. While the stages differ and many details are still uncertain, firms in all global jurisdictions need to consider taking action now to plan for this very significant structural shift in the derivatives market.

Moving from LIBOR to these alt rates will not be straightforward or without risk. For example, transition risk is high given the value and volume of LIBOR contracts. At Numerix, we understand the critical need for capital markets institutions to keep up to date and informed on all things regarding the LIBOR transition. That’s why we regularly produce LIBOR content—from thought leadership to technical insights to simple updates—to help firms understand and plan for the complex changes and adjustments the switch from LIBOR to risk free rates will produce.