Featured Product

    FINMA Issues Notification on LIBOR Replacement in Derivatives Sector

    October 16, 2020

    FINMA published notification 08/2020 on LIBOR replacement in the derivatives sector. FINMA recommends that the supervised parties affected by the LIBOR replacement sign the new fallback protocol of the ISDA and the expected equivalent changes to the Swiss framework agreements for OTC derivatives as early as possible.

    The cessation of LIBOR is getting closer. In terms of volume, the largest proportion of the contracts still linked to LIBOR are over-the-counter derivatives (OTC derivatives). In a survey of Swiss institutions in June 2020, FINMA found that OTC derivatives with a volume of over CHF 11.5 trillion are contractually bound to LIBOR beyond 2021. FINMA sees application of the new fallback documents to OTC derivatives, by as many contracting parties as possible, as essential so that the high risks associated with the cessation of LIBOR can be minimized. ISDA had announced the expected publication of its IBOR fallback documents for such OTC derivatives by October 23, 2020. After the ISDA fallback documents come into force in January 2021, no new LIBOR OTC derivative contracts should be entered into without robust fallback clauses.

     

    Related Links

    Keywords: Europe, Switzerland, Banking, Insurance, Securities, Benchmark Fallbacks, LIBOR, Derivatives, Benchmark Reforms, Fallback Protocol, ISDA, FINMA

    Related Articles
    News

    PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December

    PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.

    November 30, 2020 WebPage Regulatory News
    News

    SRB Sets Out Work Program for 2021-2023

    SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.

    November 30, 2020 WebPage Regulatory News
    News

    EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting

    EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.

    November 30, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on LIBOR Transition

    US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.

    November 30, 2020 WebPage Regulatory News
    News

    GHOS Endorses Coordinated Approach to Mitigate COVID Risks for Banks

    The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.

    November 30, 2020 WebPage Regulatory News
    News

    HM Treasury Extends Consultation Dates for FRF and Solvency II Reviews

    HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.

    November 30, 2020 WebPage Regulatory News
    News

    ECB Publishes Guide on Management of Climate and Environmental Risks

    ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.

    November 27, 2020 WebPage Regulatory News
    News

    BCBS Amends Capital Treatment of Non-Performing Loan Securitizations

    BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.

    November 26, 2020 WebPage Regulatory News
    News

    PRA Policy on Stressed VaR and RNIV Calculations Under Market Risk

    PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.

    November 26, 2020 WebPage Regulatory News
    News

    BoE to Move Statistical Data Collection to BEEDs Portal

    BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.

    November 25, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6179