Transition away from LIBOR (Interest Rate)

(Financial Consulting Firm – hedges over $2 billion daily)
Challenge:
  • ECM Consulting Group was engaged to interact with all areas of this Firm to plan and prepare for the transition away from LIBOR to a new Risk-Free Interest Rate.
    • LIBOR is an interest rate that underpins $350 trillion of financial contracts globally.
  • Libor’s reputation as the market standard was tainted in the wake of rigging scandals by Traders, which resulted in billions of dollars in fines for major global banks, effectively signaling the demise of the 50-year-old benchmark.
Highlights:
  • Obtained buy-in to create a Project Management Office.
  • Developed a detailed plan and responsibilities assigned to seven Sub-Teams.
  • Performed strategic analysis on strengths, weaknesses, opportunities, and threats.
  • Facilitated creation of a plan to upgrade to all information systems based on LIBOR.
  • Supported advocacy initiatives among regulators and industry members.
  • Oversaw development of internal/external training.
  • Planned for transitioning 30,000 executed trades from LIBOR to a new Risk-Free Rate.

Outcome:

  • All foundational work required for a successful transition was completed.
  • The upgrade of all systems requires programming expertise and in-depth knowledge of financial regulations and markets.

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ECM Consulting Group | United States