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PREPARING FOR THE TRANSITION FROM IBOR TO RISK FREE RATES

Financial Markets are faced with one of the most significant transformation projects in recent history – the change from current reference benchmark interest rates (IBOR(s)) to Risk Free Rates (RFR). This transition will have a significant impact on financial agreements using floating Interest Rates and may require comprehensive reviews and preparation to ensure the transition is managed smoothly.

Parties entering into market transactions (such as OTC derivative transactions and securities financing transactions) that use certain indices and interest rates as benchmarks are exposed to the risk that such benchmarks (i) may be subject to methodological or other changes which could affect their value, (ii) may not comply with applicable laws and regulations (such as the European Benchmark Regulation) and/or (iii) may be permanently discontinued.

Societe Generale and its experts are here to help and work with clients to anticipate the impact on their organizations and guide them through this transition.

The occurrence of any of the aforementioned risks may have adverse consequences which may materially impact the economics of the relevant market transactions.  You should conduct your own independent investigation and analysis of the potential consequences of any relevant risks such as those mentioned above, particularly in light of the ongoing industry initiatives related to the development of alternative reference rates and the update of the relevant market standard documentation.

Get in touch with our expert

Olivier Balpe
Olivier Balpe Managing Director, Head of Group IBOR Transition Program
Olivier Balpe

Olivier Balpe

Managing Director, Head of Group IBOR Transition Program

Societe Generale

Olivier began his career in 1988 working with fixed income trading teams in Citibank and CACIB in Paris and New York. He moved in 1999 to a projects management role in the CACIB Capital Market department. In 2004, he joined Societe Generale Corporate & Investment Banking in the Capital Market Department as head of projects and organization for Equities and Derivatives. Since January 2008, he has occupied several COO positions, mainly in the Equities and Derivatives world. As of May 2018, Olivier is in charge of the IBOR transition project for the Societe Generale Group.