Get ready for the IBOR transition

Financial institutions face enormous challenges in the LIBOR transition and the transition from other benchmarks to RFRs. The reform is significant.

This transition is not a one-off switch — it is a long and complicated journey, with participation from regulators. Market participants need to take immediate action to ensure a smooth transition.

MX.3 for IBOR Reform can help you navigate the LIBOR transition and IBOR replacement, delivering new functionalities for all asset classes, including cash and derivatives, to ensure a smooth transition.

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IBOR replacement challenges

A developing regulatory environment

Emerging market standards and conventions

Global impact and time-constrained transition

Operation-intensive transition

Complex modeling requirements for emerging RFR products

Multiple phases and challenges loom post-IBOR cessation

Countdown to US dollar cessation

2017-2018

JULY 2017 FCA Andrew Bailey speech
JANUARY 2018 SARON replaces TOIS
APRIL SOFR publications begins
MAY CME starts SOFR futures
OCTOBER Eurex starts SARON futures, ICE starts SOFR futures

2019

JUNE First GBP FRN transitions from LIBOR to SONIA
OCTOBER €STR publication begins

2020

JULY €STR discounting switch at CCPS
AUGUSTDiscounting switchAcceleration of CSA re-papering of bilateral trades – driven by change in Collateral Interest calculation (PAI)
OCTOBER SOFR discounting switch at CCPS
Term SONIA rates tradable by end of 2020

2021

JANUARY ISDA fallback protocol
Transition EventsEarly transition:
- • Bilateral derivates
- • Loans & Bonds
Terms rates for SOFR/others
DECEMBER Cessation of non-USD LIBOR publications
Cessation of USD LIBOR 1W and 2M publications
Options on RFR

2023

JUNE Cessation of the remaining USD LIBOR publications
SOR discontinuation
THBFIX discontinuation
PHIREF discontinuation

Still to come

Term rates for €STR
BBSW/EURIBOR termination?
HIBOR discontinuation
Cessation of other LIBOR publications and LIBOR-dependent benchmarks?
Synthetic USD LIBOR

MX.3 for IBOR Reform
Seamless, flexible, intuitive

Multifaceted solution
Covers all business processes across FO, Operations, Risk, Finance
Quick evolution as market transformations unfold (e.g. new instruments, new models, fallback protocols, etc.)
Easy solution deployment

Accelerate, automate and simplify the LIBOR transition with MX.3

“The central assumption that firms cannot rely on LIBOR being published after the end of 2021 has not changed, and this should remain the target date for all firms to meet.” BoE, FCA and GBP WG joint statement

“At the time that Libor ceases, there is a good chance the fallback spread will be relatively close to the historic median. However, there is also a possibility that the spread will be significantly above, or even below, the historic median.”Christopher Willis and Edmund Allen, Coremont LLP

“We know that Libor will continue until end 2021, but announcements about the discontinuation from the end of 2021 of Libor settings could come as early as November or December this year”Edwin Schooling Latter, FCA

“We’re pleased to be continuing our work toward a smooth transition to alternative reference rates. Our work with Murex will enable us to continue along this path and allow us to adapt to the changes in a timely manner.”Philip Whitehurst, LCH

MX.3 for IBOR Reform delivers transition mechanisms covering all aspects of the reform, from the discounting switch at CCPs to the fallback mechanisms.

Complemented by RFR indices, instruments, curves, and powerful impact analysis tools, our solution helps firms understand the impact across all business processes.

For more details, download our brochure.

Why Choose MX.3 for IBOR Reform?

Completeness

An all-in-one solution for IBOR discontinuation and transition.

End-to-end solution for all aspects of the reforms.
Extensive coverage across all business processes.

Evolution

Stay ahead of the market.

Working with leading IBOR industry groups.
Effective time to market for latest developments.

Ease of DEPLOYMENT

Implement changes quickly and successfully.

Pre-packaged solution.
Built-in flexibility.

Expertise

Excellence is in our DNA.

Highly skilled team worldwide.
Global reach with regional focus.

Through a comprehensive range of transition mechanisms across all asset classes and business processes, MX.3 for IBOR reform helps you all the way through early IBOR transition, cessation and pre-cessation scenarios, delivering end-to-end automation, increasing efficiency and reducing operational risks.

Discounting and Price Alignment Interest

Simplify the switch.

Transition Events for Trades and Securities

A smooth transition from front-office to operations.

MarkitWire Connectivity

Achieve full interoperability.

Hedge Accounting Transition

Minimize manual interventions.

Watch the LIBOR virtual week webinar.

Smooth
Manage the transition of thousands of trades in a click
Simple
Make complex mechanisms simple and efficient
Consistent
Ensure consistency across all business processes, front-to-back-to-risk

With MX.3 for IBOR Reform, clients can trade, process and manage the risk of transactions based on new RFR instruments as soon as they are available on the market.

RFR Instruments and Curves

New RFR conventions and advanced curve modeling.

MarkitWire Connectivity

Seamless integration with MarkitWire.

RFR Analytics

Add emerging linear and non-linear products to your catalogue.

Performance

Optimize calculation time for OIS derivatives books.

Learn more about MX.3 analytics.

MX.3 for IBOR Reform operates new RFRs across the following markets:

and more...

MAKE INFORMED DECISIONS

Firms will need to continuously run impact analysis in the coming months/years to master the transition process.

MX.3 for IBOR Reform provides key users from all business lines with:

• A detailed view of the impact of the reforms for each benchmark index.
• A quantitative assessment of the IBOR replacement effect for each business process.
• The impact of the fallback processes through various what-if scenarios.

Diagram

Our Insights

Video

IBOR Transition: Addressing the Market Challenges Posed

Listen as Murex's Didier Loiseau shares an overview on how MX.3 for IBOR Reform can help capital markets players address the major challenges posed ahead of the December 2021 deadline.

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Webinar

LIBOR Transition: Hitchhiker's guide to the non-linear RFR galaxy

Didier Loiseau, global head of trading and financial engineering, and Kamal Hirbli, global head of rates, bonds and credit at Murex, explore the uncharted territories of non-linear RFR trading.

Listen now

Video

Technology's Role in LIBOR Reform

Stella Clarke, Murex CMO, sat down with Finextra to discuss the challenges that come with the move away from LIBOR, the steps that capital markets institutions need to take to be ready for the change and how the right technology can help smooth the transition path.

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Report

LIBOR Special Report - Murex Q&A

Alexandre Bon, Murex head of marketing for APAC, provides insight on key industry concerns around the transition away from LIBOR in this question and answer session with Risk.net

Video

LIBOR Virtual Week

In this LIBOR Virtual Week webinar, Didier Loiseau, global head of rates, bonds and credit at Murex, gives a guide to the new world of risk-free rate benchmarks in the transition phase.

Watch video

Article

Cliff effect might demand risk calculation agility until Libor cessation

The challenge that the capital markets industry is facing as short-term SOFR and LIBOR remain decorrelated until the Libor Transition is outlined in this Risk.net feature.

Video

LIBOR Endgame

In this video from Sibos 2019 in London, Didier Loiseau, Head of Rates and Credit Product Development at Murex looks at the story thus far, the challenges ahead and the role of technology as LIBOR takes it final bow.

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Blog

As LIBOR, Similar Benchmarks Phase Out, Alternative Reference Rate Adaptation is Key

Technology is key to financial institutions’ ability in overcoming alternative reference rate transition hurdles. Market actors need to be able to trade, process and risk manage new benchmarks.

Video

Risk.net LIBOR Series: USD / SOFR

Listen as industry professionals discuss the outstanding issues associated to transitioning financial products tied to U.S. dollar Libor and remaining concerns over the Secured Overnight Financing Rate (SOFR).

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Brochure

MX.3 for Cross-Asset Trading

As the capital markets continue to evolve, opportunities and challenges appear in equal measure. In this time of fundamental change, banks must offer rich services and creative solutions to their clients, while balancing cost pressures and regulatory constraints.

Video

Risk Australia Virtual 2020

Murex's Alexandre Bon joins a panel of industry experts at Risk Australia to discuss the LIBOR benchmark reform in the Australian context.

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Video

Risk ASEAN Virtual 2020

Murex's Alexandre Bon takes part in this panel discussion at Risk ASEAN to discuss the hot topic of 'LIBOR transition – How can ASEAN prepare for it?' as the 2021 deadline draws closer.

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Blog

Upcoming ISDA Fallbacks Highlight Need for Right Solution to Manage the LIBOR Transition

In the evolving ISDA context, this blog seeks to explore what IBOR solution technology is necessary to address the two major dynamics of the transition.

Video

Race to LIBOR Transition: A Global Perspective

Listen as Murex's Didier Loiseau shares a global perspective on how the LIBOR Transition will impact markets and asset classes around the world at the Almus Rupee Money Conference 2020.

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IBOR - Curated tweets by Murex_Group

Latest IBOR transition insights

Get in touch with Murex’s IBOR team

Murex’s dedicated team is here to help you with the upcoming IBOR transition and support you in meeting the regulatory deadline. Please call your regional office or, if you prefer to be contacted, complete the form and one of the team will get in touch.

About Murex

For more than 30 years, Murex has been providing cross-asset financial technology solutions to capital markets players. Its platform, MX.3, supports trading, treasury, risk and post-trade operations, enabling clients to better meet regulatory requirements, manage risk, and control IT costs. With more than 55,000 daily users in 60 countries, Murex has clients in many sectors, from banking and asset management to energy and commodities. The MX.3 Risk and Regulatory Suite is a comprehensive framework that enables financial institutions to build a strategy for regulatory compliance and internal risk management. Find out more at www.murex.com.