FSB says fallbacks should kick in if Libor no longer accurate

Isda plans to consult on what to do if a benchmark is no longer representative of underlying markets

Regulators have publicly called on the International Swaps and Derivatives Association to consider adding another trigger to Libor-based derivatives contracts that would automatically switch them on to an alternative reference rate: namely, in the event Libor is deemed no longer representative of underlying funding markets.

As it stands, the fallbacks, which will be inserted into over-the-counter contracts through an industry-wide protocol, will kick in only if Libor ceases publication. But