Finastra expands Fusion LIBOR Transition Calculator

The move enables banks, corporates, and borrowers to calculate ARR in preparation for the end of the majority of LIBOR rates on 31 December 2021. In addition to SOFR for the US dollar and SONIA for pounds sterling, the calculator service now incorporates ARR rates €STR for the euro, TONAR for the Japanese yen, and RFR rate SORA for the Singapore dollar.

With the cessation of LIBOR at the end of 2021 for the majority of currencies and tenors, the Fusion LIBOR Transition Calculator service will help banks and corporates borrowers manage the transition to the new rates. The calculator reportedly uses a trusted methodology, based on accepted ARR market conventions, to deliver consistent and accurate results thereby helping users reduce operational risk and ensure regulatory compliance. 

Available through Finastra’s FusionFabric.cloud open innovation platform, the calculator service can be integrated with a bank’s existing lending systems. The use of Open APIs also facilitates integration with legacy systems that have not been prepared for the LIBOR transition and are unable to perform complex ARR calculations. The new calculated ARR rates can be directly consumed by these legacy applications, avoiding the need for complex and costly system changes.