On June 15, 2022, ISDA® published the June 2022 Benchmark Module of the ISDA 2021 Fallbacks Protocol (benchmark module) to allow firms to incorporate fallback benchmark rates into all legacy derivatives contracts that incorporate an ISDA covered definitions booklet, including the 2000 ISDA Definitions, the 2006 ISDA Definitions (2006 Definitions), or the 2021 ISDA Interest Rate Derivative Definitions (2021 Definitions), with counterparties that also adhere to the ISDA 2021 Fallbacks Protocol (protocol).

ISDA has published the benchmark module to enable parties to agreements that incorporate or reference the USD LIBOR Swap Rate, as defined in a covered definitions booklet, to amend the terms of their agreements to include the terms of, or a particular defined term included in, either version 3.0 of the 2021 Definitions or Supplement 88 to the 2006 Definitions, each as published by ISDA and effective on November 10, 2021 (as applicable), or such equivalent provisions as they relate to that covered definitions booklet.

The benchmark module includes a statement that the relevant benchmark in the benchmark module is the USD LIBOR swap rate. That rate is not a LIBOR benchmark. It is the swap rate for USD swap transactions with a floating leg of USD LIBOR. As such, adherence to the ISDA protocol and the benchmark module (or any benchmark module) will not amend contracts referencing LIBOR in any currency. To amend contracts referencing LIBOR, firms must adhere to the ISDA 2020 LIBOR Fallbacks Protocol (see Legal Update, ISDA Publishes IBOR Fallbacks Supplement to 2006 ISDA Definitions and Related Protocol).

The benchmark module comes into effect on June 15, 2022. ISDA may publish other modules covering additional IBORs in the future.

The new module is accompanied by supporting documents, including frequently asked questions. All of the documents are available on the benchmark module's webpage.