The International Swaps and Derivatives Association (ISDA) published an updated and enhanced version of its definitional booklet for interest rate derivatives, marking a big step in the shift to digital documentation. Along with this, ISDA launched a new digital documentation platform to improve the ability of firms to efficiently access and navigate ISDA documents. The platform called MyLibrary will initially include the new 2021 ISDA Interest Rate Derivatives Definitions and the 2002 ISDA Master Agreement. Other documentation will be available in digital form via the platform over time. In a separate development, ISDA announced the results of its consultation on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and the USD LIBOR ICE Swap Rate. The results indicate that a significant majority of respondents agree with the fallback provisions set out in the draft amendments attached to the consultation.
The amendments in the consultation implement the fallbacks suggested by the Non-Linear Task Force of the Working Group on Sterling Risk-Free Reference Rates in the UK and a Subcommittee of the Alternative Reference Rates Committee in the US. Respondents to the consultation satisfied the criteria specified in the consultation for ISDA to publish a Supplement to the 2006 ISDA Definitions to incorporate the sterling LIBOR ICE Swap Rate fallback provisions and a Supplement to incorporate the US dollar LIBOR ICE Swap Rate fallback provisions as well as template language that counterparties could use to negotiate bilateral amendments for incorporation of the amended terms in legacy derivative contracts. A report analyzing the consultation results will be available in the coming weeks. ISDA will also begin finalizing the amendments to implement fallbacks for the sterling LIBOR ICE Swap Rate as soon as possible and will finalize the amendments to implement fallbacks for the USD LIBOR ICE Swap Rate when a SOFR swap rate is published in a form that can be referenced in financial instruments. On July 19, 2021, ISDA had launched its Understanding IBOR Benchmark Fallbacks microsite on its newly redesigned Benchmark Reform and Transition from LIBOR InfoHub. The microsite was developed in coordination with The Brattle Group and provides background information about key interbank offered rate fallbacks.
- Digital Definitions for Interest Rate Derivatives
- MyLibrary Platform
- Consultation on Fallbacks
- Understanding IBOR Benchmark Fallbacks: Microsite
- Benchmark Reform and Transition from LIBOR: InfoHub
Keywords: International, Banking, Securities, Insurance, Benchmark Reforms, LIBOR Transition, ICE Swap Rate, Benchmark Fallbacks, LIBOR, Derivatives, Interest Rate Derivatives, ISDA Definitions, ISDA
Previous ArticleEIOPA Consults on Reporting and Disclosures Under Solvency II
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.