The International Swaps and Derivatives Association (ISDA) has published a statement summarising responses to a supplemental consultation on the spread and term adjustments that would apply to fallbacks for derivatives referencing euro Libor and Euribor. The statement follows a fourth consultation exercise over the issue that has vexed markets as regulators push for an end to the […]
Tag: benchmark reform
The Reserve Bank of New Zealand (RBNZ) has issued a statement of support for the New Zealand Financial Markets Association’s (NZFMA) selection of New Zealand’s Official Cash Rate (OCR) as the country’s fall-back benchmark interest rate. “Global interest rate benchmarks, such as Libor, play a substantial role in the valuation of financial derivatives and contracts,” […]
The Bank of England’s Working Group on Sterling Risk Free Reference Rates, which is tasked with leading the transition away from Libor to term Sonia rates, has launched a consultation process to help drive the evolution, which is intended to be complete by the end of 2021.
The work is part of a global effort to shift interest rate benchmarks away from the scandal-ridden mechanisms such as Libor, Euribor and Tibor, has been launched at a time when attention on the reform process is ratcheting up.
The International Swaps and Derivatives Association has launched a market-wide consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates.
The consultation sets out options for adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued.
ISDA has been leading an industry effort to implement robust fallbacks for derivatives contracts referenced to certain Ibors since 2016, at the request of the Financial Stability Board’s Official Sector Steering Group.
The International Swaps and Derivatives Association (ISDA), the Association of Financial Markets in Europe (AFME), International Capital Market Association (ICMA) and the Securities Industry and Financial Markets Association (SIFMA) and its asset management group (SIFMA AMG) have published a new report that assesses the issues involved with benchmark reform, and makes recommendations on steps firms can take to prepare for the transition from interbank offered rates (IBORs) to alternative risk-free rates (RFRs).
The report, which was based on a survey of 150 banks, end users, infrastructures and law firms in 24 countries, shows a gap between high levels of awareness of benchmark reform and concrete steps being taken to transition from the IBORs to alternative RFRs.
The International Swaps and Derivatives Association has begun a comprehensive analysis of the issues and potential solutions related to transitioning financial market contracts and practices to new alternative risk-free rates.
The association says the analysis will include a targeted global survey of buy- and sell-side firms and infrastructure providers to identify the means by which market participants can effectively implement regional benchmark transitions, as well as highlight possible challenges. The new report will consider how interbank rates, or ‘IBORs’, are currently used across financial markets.