Swaps market heading for Libor fallbacks clash

Euro market goes own way on question of how to replace term Ibors with overnight RFRs

RFR headache: euro working group wants a forward-looking term rate as a fallback

The swaps market is heading for a clash on the vital question of how contracts respond to the death of scandal-hit Ibor benchmarks, after participants in the euro market ignored guidelines laid down by international regulators, and diverged from the results of the market’s first consultation on four other swaps currencies.

Any split in the choice of the so-called fallback – to replace an interbank offered rate (Ibor) when it stops being published – would undermine attempts to safeguard the