The Federal Reserve issued "Supervision FAQs on the Transition away from LIBOR." The FAQs follow on previously issued regulatory guidance from October 2021 and November 2020.

Among other things, the FAQs include statements as to what constitutes a "new contract" for purposes of the previously issued guidance, particularly for (1) modifications to adjustable-rate mortgages; (2) loans that "automatically renew" after 2021; and (3) physical settlement of pre-2022 contracts (e.g., swaptions).

The FAQs also provide responses on the ability of firms to engage in secondary market trading of LIBOR-linked instruments issued before 2022, the need for fallback language in contracts entered into before 2022, and the approach by examiners in assessing firms' LIBOR transition actions.