Featured Product

    ISDA Announces Results of Consultation to Implement Swap Fallbacks

    July 23, 2021

    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.

     

    Related Links

    Keywords: International, Banking, Securities, Insurance, Benchmark Reforms, LIBOR Transition, ICE Swap Rate, Benchmark Fallbacks, LIBOR, Derivatives, Interest Rate Derivatives, ISDA Definitions, ISDA

    Related Articles
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    News

    Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks

    At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.

    September 14, 2023 WebPage Regulatory News
    News

    ISSB Standards Shine Spotlight on Comparability of ESG Disclosures

    The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures

    August 22, 2023 WebPage Regulatory News
    News

    EBA Issues Several Regulatory and Reporting Updates for Banks

    The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.

    August 10, 2023 WebPage Regulatory News
    News

    BCBS Proposes to Revise Core Principles for Banking Supervision

    The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.

    August 04, 2023 WebPage Regulatory News
    News

    US Proposes Final Basel Rules, Transition Period to Start in July 2025

    The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.

    August 04, 2023 WebPage Regulatory News
    News

    FSB Report Outlines Next Steps for Climate Risk Roadmap

    The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.

    August 04, 2023 WebPage Regulatory News
    News

    EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise

    The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.

    July 31, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8931