Market embraces ISDA pact to automatically substitute a replacement rate for hundreds of trillions of dollars worth of interest-rate swaps, futures, and options.
Lack of volume in derivatives tied to other benchmarks is driving many asset managers, traders, and corporate treasurers to continue using LIBOR-based derivatives.
In a hazy future, what seems clear is that investors may need to say goodbye to the low-volatility FX environment, with hedging throughout 2020 likely to be expensive.