ITFA and Sullivan & Worcester Issue Joint Guidance to ITFA Members on the Use of Risk-Free Reference Term Rates in Trade and Export Finance

Press Release
September 14, 2021

London, UK - The recent authorisation of a forward-looking US Dollar term rate by the Alternative Reference Rates Committee (ARRC) in the United States is the most significant development in the transition from LIBOR to forward-looking risk-free rates (RFRs) for trade finance banks and customers since the process began.

Whilst the new recommended rates behave operationally in a very similar way to LIBOR, changes will need to be made to existing documents and procedures and some important commercial decisions need to be made.

As part of their ongoing efforts to assist and inform the market through the LIBOR Hub, ITFA (the International Trade and Forfaiting Association), Sullivan and TFG (Trade Finance Global) have collaborated to bring ITFA Members a guide to the issues to be tackled and some ideas on how to solve them.

The guide can be found here.

About Sullivan
Sullivan & Worcester (Sullivan) is a leading AmLaw 200 law firm. It's leading Trade Finance Group is well placed to assist in documentation issues. With over 200 attorneys in Boston, London, New York, Tel Aviv and Washington, DC, they guide organizations that are rewriting the rules. Sullivan’s clients, including Fortune 500 companies and emerging businesses, rely on Sullivan’s strategic vision, comfort with complexity and intense focus on results. As a global law firm, Sullivan’s reach extends beyond the United States. Sullivan has represented clients around the world and has a deep bench for working on a variety of matters and issues affecting clients globally.

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