BoE Publishes Update on Meeting of Working Group on Risk-Free Rates
BoE published the minutes of the July meeting of working group on sterling risk-free reference rates. At the meeting, ISDA provided an overview of two open consultations, the first consultation seeking views on the approach to fallback rates for certain interbank offered rates (IBORs) and the second consultation on the conditions to trigger fallback language. It was mentioned that, in the fourth quarter of 2019, ISDA plans to publish new definitions for fallback arrangements and publish a protocol to allow these fallbacks to be included in legacy LIBOR contracts.
ISDA updated members on the timeline for feedback from its two open consultations. A future consultation on the parameters for fallback language was planned for August; the consultation would cover an average spread between LIBOR and risk-free rates based on how many years and whether a mean or median approach to the spread adjustment should be used. The Chair for the working group updated members on the formation of a new Senior Advisory Group (SAG) to provide strategic support and senior engagement at firms to help achieve the working group’s deliverables and objectives. The Terms of Reference for the SAG have also been published. SAG would comprise a number of Senior representatives from the largest market participants across relevant segments, providing an additional high-level perspective on potential barriers to transition.
Related Links
Keywords: Europe, UK, Banking, Securities, Risk-Free Rates, LIBOR, Interest Rate Benchmarks, Benchmarks Fallbacks, BoE
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
ISDA on Responses to Consultation on Pre-cessation Issues for LIBORRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards