LiBOR may be on its way out, but the tech solutions keep coming

Calypso launches standard LIBOR Assessment Service to help Customers achieve smooth transition to the new RFRs

Open a bank account directly with a central bank

o complement the significant investment already made in Research and Development by Calypso to support LIBOR Reform and the transition to the new risk-free rates (RFRs), the Company is now rolling out an innovative LIBOR Transition Assessment service which will equip customers with the information they need to develop an informed strategy and execution plan as part of their overall transition program.

Calypso Technology Inc., a leading provider of cross-asset front-to-back technology solutions for financial markets, has already invested heavily in LIBOR transition and has accrued significant expertise.

The transition deadline of end-2021 may seem comfortably distant but given the impact it will have on all customers and their systems, not just in the front-office, preparations need to be well under way by now.

The new Assessment Service is designed to reduce uncertainty by assessing the impact of planned software changes, configuration considerations and migration paths related to LIBOR transition. It offers a standardized approach, tailored to each customer’s specific usage of their Calypso solution. An automated process makes it easy for them to supply the data required from their Calypso installation for analysis and assessment.

Upon completion of the engagement, customers then have the option of continuing with Calypso for project execution, undertaking it themselves, or engaging with certified partners.

Says Gabriel Lopes, Global Head of Customer Delivery, Calypso Technology:

“Our customers have asked for help and told us that the full extent of the impact across their systems is difficult to assess and is likely to be underestimated. Some already fear that they will not be ready in time. In response, we have focused our efforts into building this new LIBOR Assessment Service, which leverages our investment in future proofing the Calypso platform and uniquely positions us to deliver substantial value to our customers. We are confident that this will accelerate readiness for the transition across our client base as we are already seeing very high levels of engagement.”

The new LIBOR Assessment Service is part of Calypso’s ongoing Value Assurance program, which enables customers to build on their existing investment in the product and helps projects run just as they were designed. Value Assurance Services are developed and packaged to provide guidance and assurance to customers who choose to implement our software on their own, or with Partners but want an enhancement level of support and involvement from Calypso. They include Planning and Safeguarding, Project Reviews, Upgrade Advisory Services, Inquiry Services, Troubleshooting, Technical Healthchecks and Learning Services, amongst others.

The end of Libor as a benchmark for interest rates on everything from mortgages to credit cards is just two years away, leaving the market in search of a viable substitute. More than $370 trillion of existing financial contracts are pegged to Libor worldwide; of those, roughly $200 trillion are denominated in U.S. dollars and need to be addressed immediately — a monumental task in such a short period.

Fortunately, significant progress has been made in moving toward an alternative called the Secured Overnight Financing Rate, or SOFR, which is based on an average daily volume of more than $1 trillion of actual transactions in the U.S. Treasury repo market. I am chair of the Alternative Reference Rates Committee, a public-private committee convened and sponsored by the Federal Reserve to facilitate the transition in the U.S. It recommends institutions stop using Libor as quickly as possible and move to SOFR.

Read this next

Inside View

Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

Executive Moves

Ripple announces Monica Long as President

“I’m incredibly honored to take on the role of President at Ripple as we expand deeper into crypto-enabled services like liquidity, settlement and custody.”

Executive Moves

Arabesque AI appoints Carolina Minio Paluello as CEO

“Arabesque AI is uniquely positioned to service the asset management industry’s need to meet the growing market demand for hyper customised portfolios.”

Industry News

SEC Commissioner Mark T. Uyeda says standardized ESG measures are doomed to fail

“Because ESG ratings may be divorced from matters of financial materiality, they can reflect a particular political or social agenda.”

Industry News

Worldline launches digital payments suite in India

“Our low-cost innovative offering SoftPOS will empower SMBs in a big way to accept digital payments affordably.”


cTrader Web 4.5 Presents Guest Mode, Multiple Charting and Copy Improvements

Spotware has announced the release of its cTrader Web version 4.5, which comes with a whole range of features and improvements for all cTrader users.


SteelEye suggests integrated surveillance as Morgan Stanley fines employees over WhatsApp

“The use of integrated surveillance means firms can avoid unwanted regulatory attention by enabling them to self-report and self-remedy more efficiently when malpractice is flagged.”

Industry News

ASIC bans Gregory William Finerty for unlicensed FX algo trading bot

Bradford AI leased an algorithmic trading program known as ‘Robot 1’ to trade on the FX market, using an Australia-based over the counter contracts for difference (CFD) broker.


With the recent changes to St Vincent licensing, what will the future trends be for licensing in 2023?

New St. Vincent and the Grenadines regulations came as somewhat of a shock for those brokerages that are only regulated in SVG