Global law firm Reed Smith recently advised the European Federation of Energy Traders (EFET) on updates to its standard templates, replacing soon-to-be discontinued reference rates - including London Inter-bank Offered Rate (LIBOR) settings – with “risk free rates”. The upgrade of the EFET standard templates enables market participants to mitigate their exposure to the soon-to-be discontinued settings, which will cease to exist or become non-representative after the end of 2021. Contracts developed by the EFET are critical to efforts to standardize wholesale power and gas contracts in Europe.
The Reed Smith team advising the EFET included Joe Kohler and Charlotte Simpson, a London-based finance partner and associate, respectively.
Additional information pertaining to the templates can be found via this press release issued by the EFET.