Surecomp Affirms LIBOR Transition Readiness Ahead of December 2021 Deadline
Toronto, Canada - Surecomp®, the global provider of trade finance and treasury solutions for banks and corporations, today announced its readiness to support customers in their transition away from using LIBOR-based instruments by confirming its solutions are fully enabled with alternative reference rate (ARR) calculations.
Leading global banks have already started implementing the new capability to ensure their operations can now support the automatic upload of new daily risk-free rates (RFR) such SONIA (GBP), SOFR (USD), TONAR (JPY) and SARON (CHF). In their processing of trade finance loan agreements under letters of credit, standby letters of credit, collections and open accounts, Surecomp solutions can also - through the development of new functionality and a designated interest calculator engine - support the new reference rate calculation methods and the required changes to the customer accounting system feed.
While the official deadline of 31st December 2021 is still over one year away, it is strongly recommended that banks have put alternative measures in place by the interim deadline of 30th September 2020, and do not enter into any LIBOR-based agreements that will mature beyond 31st December 2020, by which time LIBOR will no longer be deemed a reliable index.
“The financial stability of our customers during this transition depends largely on their preparedness,” claims Gadi Komet, Surecomp’s EVP of Delivery and Operations. “It goes without saying that as part of our commitment to customer success and to supporting resilience in times of change, we are ourselves prepared to deliver regulatory-compliant solutions and the LIBOR transition to an alternative reference rate is no exception.”