Talking Trade Finance Header-1

Autumn 2021 Updates on LIBOR Reform

Posted by Jacqueline Cook on Nov 2, 2021 9:05:00 AM

It is starting to feel as if we are nearing the end of a long climb, in fact the end of a long period of uncertainty, for financial institutions and businesses alike, on how to deal with LIBOR transition. Having to keep an eye on regulators' statements, legislation, market developments and a large number of publications and webinars from trade bodies, takes quite an effort and indeed a considerable amount of time, not least when parties are also dealing with the economic fallout of the pandemic and trying to keep trade going. So, are we nearly there?

Read More


So Far... and Is SOFR So Good?

Posted by Jacqueline Cook on Jul 30, 2021 3:27:00 PM

By Jacqueline Cook, Senior Knowledge Development Lawyer

Following much anticipation, the Alternative Reference Rate Committee (ARRC) has announced its official recommendation of the CME Group’s forward-looking Secured Overnight Financing Rate (SOFR) term rates (SOFR Term Rates). Market participants should now have "all the tools"[1] needed to transition to US dollar (USD) SOFR.

Earlier this week, ARRC issued two press releases:

  • publishing (a) conventions for SOFR Term Rates and (b) best practice recommendations for the use of SOFR Term Rates, and announcing the SOFR First Convention switch for USD linear swap trading;[2] and
  • recommending CME Group SOFR Term Rates and publishing a factsheet on key steps and milestones for the LIBOR transition.[3]

ARRC’s announcement has been welcomed as "an important milestone for the industry and the continued development of the broader SOFR ecosystem."[4]

Read More

Topics: SOFR, LIBOR, Alternative Reference Rate Committee, SOFR Term Rates

And Spring Heralds SONIA... and Alternative Rates

Posted by Jacqueline Cook on Mar 31, 2021 11:08:26 AM

By Jacqueline Cook, Senior Knowledge Development Lawyer

The end of March has welcomed Spring, and this year it marks a new era for the financial markets, particularly for loans and financial products which would usually use Sterling LIBOR as the benchmark for calculation of interest, default interest or to calculate a discount rate. After 31 March 2021, alternative rates or benchmarks should be used in place of Sterling LIBOR.

Read More

Topics: SONIA, LIBOR, LIBOR replacement rate

What 2021 holds in store for trade and commodity finance

Posted by Amanda Montano on Jan 29, 2021 11:16:39 AM

By Amanda Montano and Humzah Irfan

Jacqueline Cook, Senior Knowledge Development Lawyer at Sullivan's London office, broke ground on our first Trade & Export Finance Webinar of 2021, held on 21 January, and the EU-UK Trade and Cooperation Agreement (the TCA) for the post-Brexit position was top of the agenda. London's Senior Partner, Geoffrey Wynne, followed with thoughts on what the trade finance industry should be looking out for in 2021.

Read More

Topics: Brexit, LIBOR, Digitalisation

Transitioning out of LIBOR: What is the impact for trade and export finance?

Posted by Amanda Montano on Dec 4, 2020 11:06:14 AM

Written by Amanda Montano and Szonja Kolbenheyer

Things have been moving quickly now on LIBOR and IBOR reforms, but with regulators in the UK, US and EU going at different speeds. Needless to say, it was a welcome development this week to see combined announcements on 30 November 2020 from the Federal Reserve Board, the Alternative Reference Rates Committee (ARRC), the LIBOR administrator ICE Benchmark Administration, the Financial Conduct Authority (FCA) and the International Swaps and Derivatives Association (ISDA). International cooperation really is needed as so many trade and export finance deals are inherently cross-border and often involve multiple currencies. The fact that USD LIBOR will be available for legacy loans until 30 June 2023 will help sectors like ou rs, which have been recognised 
as needing a forward-looking term rate.
Read More

Topics: LIBOR, Geoffrey Wynne

Sullivan Webinar – Trade Finance in 2020: annus horribilis, lessons for the future or a bit of both?

Posted by Sam Fowler-Holmes on Nov 23, 2020 11:21:34 AM

By trainee Humzah Irfan at Sullivan in London

Sam Fowler-Holmes restarted Sullivan's Breakfast Seminar, this time at lunchtime! On the day England moved into a second national lockdown due to the COVID-19 pandemic, Sam provided an overview of the impact of COVID-19 on the trade finance sector. The presentation discussed issues from the progress in digitalisation in the trade finance market to Brexit and LIBOR.

Read More

Topics: Brexit, LIBOR, Supply chain finance, COVID-19, Digitalisation

Challenges facing trade and commodity finance in 2020

Posted by Sullivan trainee Rajan Dhami and partner Simon Cook on Feb 12, 2020 5:30:41 PM

Sullivan Monthly Breakfast Seminar, 23 January 2020

At Sullivan's January 2020 London Breakfast Briefing, Sam Fowler-Holmes provided an overview of key challenges facing the trade finance sector in 2020. From sanctions to LIBOR, with a hint of Brexit, Sam covered a broad range of topical issues.

Read More

Topics: Brexit, LIBOR, trade finance breakfast seminar, ESG, Fintech, Fifth AML Directive

ARRC publishes draft transitional provisions for USD LIBOR replacement rate

Posted by Robert Franklin on Oct 2, 2018 4:46:47 PM

While we are waiting on the LMA's Working Sub-Group on Transition Issues in Syndicated Loan Markets to produce draft provisions dealing with the transition to SONIA, their US counterpart, the Alternative Reference Rates Committee (ARRC) has already done so for SOFR, the US dollar risk free rate (RFR), in its recent consultation paper "Regarding More Robust LIBOR Fallback Contract Language for New Originations of LIBOR Syndicated Business Loans".

The ARRC's approach is likely to be influential for the LMA in relation to transitional drafting for USD (and potentially for other currencies as well in the interests of consistency). The highlights of the ARRC consultation paper include:

Read More

Topics: SONIA, ARRC, SOFR, RFR, LIBOR, LIBOR replacement rate, syndicated business loans

Sullivan 4c

About the Blog

Talking Trade Finance is here to provide you with all of the latest updates in the Trade & Export Finance Industry.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

Meet the Editor


Sam Fowler-Holmes is a partner in the Trade & Export Finance Group in Sullivan’s London office. He specialises in structured and unstructured trade, commodity and export finance, advising both financial institution and corporate clients on a range of financing products including pre-export financing, prepayment financing, letter of credit and payment instrument facilities and working capital and borrowing base financings. Sam is a regular speaker at the Sullivan trade and export finance seminars and is a member of the ITFA Emerging Leaders Committee.


Subscribe Here!

Recent Posts

Posts by Topic

see all