Tag: IBOR

IBOR

BoE Signs Up to ISDA’s IBOR Fallbacks Protocol

The Bank of England (BoE), has signed up to the International Swaps and Derivatives Association’s (ISDA) ‘IBOR Fallbacks Protocol’ ahead of the transition away from LIBOR by the end of 2021. ISDA launched the Protocol today and confirmation that the Bank has signed up is available on ISDA’s website. This will apply both to transactions BoE undertakes on […]

IASB Issues Amendments to IFRS Standards

The International Accounting Standards Board (IASB) has finalised its response to the ongoing reform of interbank offered rates (IBOR) and other interest rate benchmarks by issuing a package of amendments to IFRS Standards. The amendments are aimed at helping companies to provide investors with useful information about the effects of the reform on those companies’ […]

ISDA Urges Support for New Ibor Fallbacks

The International Swaps and Derivatives Association (ISDA), has published a statement strongly urging adherence to the association’s Fallback Protocol as part of the financial markets industry’s switch from Ibors to risk-free rates (RFRs). ISDA is planning to amend certain ‘rate options’ in its 2006 Definitions to include fallbacks that would apply upon the permanent discontinuation […]

FSB Reiterates Libor Reform Path

The Financial Stability Board (FSB) has reiterated its desire to see markets transit from Ibors to risk-free rates as a critical benchmark, in spite of the Covid-19 pandemic. FSB says it has discussed the impact of the disease on benchmark transition and while its Official Sector Steering Group says it recognises that some aspects of […]

FMSB Releases Third Spotlight Paper on Libor Transition

The FICC Markets Standards Board (FMSB) has published its latest Spotlight Review on Libor transition with practical case studies to support firms when considering the risks to fairness and effectiveness as the market moves to risk-free rates as more sustainable and representative benchmarks. As the risks associated with the continued provision of new LIBOR-linked products […]

ISDA a Step Closer to Benchmark Fallbacks Definition

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 […]

ISDA to Try Again on Pre-Cessation Fallbacks

Following a consultation that failed to come to a consensus last year, The International Swaps and Derivatives Association (ISDA) has announced that it will re-consult on how to implement pre-cessation fallbacks. Based on the results of that consultation, ISDA says it will move quickly to deliver the appropriate, industry endorsed fallback solution later this year. […]

MAS Established Benchmark Transition Team

The Monetary Authority of Singapore (MAS) has announced the establishment of the Steering Committee for SOR Transition to SORA. The committee will oversee an industry-wide interest rate benchmark transition from SOR to SORA. SOR is a key interest rate benchmark in Singapore that is used in the pricing of SGD interest rate derivatives, commercial and retail […]

ISDA Publishes Preliminary Results of Benchmark Fallback Consultation

The International Swaps and Derivatives Association (ISDA) has published a statement summarising the preliminary results of its supplemental consultation on adjustments that would apply to fallback rates in the event certain interbank offered rates (Ibors) are permanently discontinued. The consultation was launched in May, and set out options for spread and term adjustments if fallbacks are triggered […]

And Another Thing…

I read this week that UBS’ compliance head Markus Ronner believes that while they will inevitably remain high, compliance costs for the banking industry have peaked. There are undoubtedly a host of financial markets’ participants out there who fervently hope he is right, actually if it comes down to it, I hope he’s right! The […]