‘Frustration’ claims unlikely to hit Libor reform

FMLC's Joanna Perkins dismisses legal concerns about benchmark reform

Law books
Letter of the law: litigation risk following a shift away from Libor is overplayed, says legal expert

A leading expert on benchmark reform has dismissed fears the overhaul of existing derivatives reference rates could lead to terminations based on the legal principle of "frustration", where the purpose for which the contract was entered into is destroyed.

"We should not worry too much. History is littered with examples of benchmark transition and evolution, and all of them, to my knowledge, have occurred without market disruption and without significant litigation around frustration risk," said

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