February 2019

REGULATORY: Contact: Tomoko Morita (tmorita@isda.org)

JPY Benchmark Working Group

On February 8, members of JPY Benchmark Working Group met to discuss the following issues:

• Submission of ISDA comments to the 1st Consultative Document “ Approach for Integrating Japanese Yen TIBOR and Euroyen TIBOR”
• Update on IBOR fallback works and the next steps
• Update on IBOR fallback documentations i.e. amendments to the 2006 ISDA Definition to include new IBOR fallbacks, outline of ISDA IBOR Fallbacks Protocol, and the draft wording for IBOR fallback protocol(s) regarding references to IBORs in ISDA Master Agreement and ISDA credit support documentation

DATA & REPORTING: Contact: Tomoko Morita (tmorita@isda.org) / Kaori Horaguchi (khoraguchi@isda.org)

ISDA issues LEI Factsheet document

In February, ISDA published, both in English and in Japanese, the joint ISDA-GFMA LEI Factsheet document, “It Is Time to Obtain an LEI”, as an updated version published in July 2017.

The publication highlights the pressing need for market participants to obtain an LEI. Forthcoming global regulations will shortly require the reporting of LEIs for a wider universe of over-the-counter derivatives transactions. This will apply to entities in Asia-Pacific, in many cases. Institutions large and small need to act now to ensure they comply.

ISDA conducts industry survey on UTI readiness

On February 26, ISDA launched a survey on members’ views toward the current status of their readiness for the UTI implementation, based on the recent Japanese regulator’s study plan to draw up measures to transpose the FSB guidance into the Japanese national rules, i.e. a legislation of mandatory implementation of UTIs for JFSA reporting, no later than end-2020.

Compiled feedbacks from member firms were submitted to JFSA on March 8.

ISDA performs a mapping exercise relating to Japanese Golden Week

Given the situation where the Japanese Golden Week holiday for 2019 (which is expected to be 6 consecutive weekday holidays in Japan in the period from and including 29^th April to and including 6^th May 2019) may have an impact, to a certain degree, on parties’ ability to carry out certain contractual obligations (such as valuation, settlement, options’ exercise, etc.), ISDA is currently performing a mapping exercise with the aim to provide clarity on the impact of market closures to the main contractual obligations, based on the standard default provisions set out in the various ISDA definitional booklets. This work is expected to be published to members by the end of March 2019.

UPCOMING COMMITTEE AND WORKING GROUP MEETINGS / CONFERENCES

 March 11        Japan Collateral Working Group      (Japanese language meeting)

March 20       JPY Benchmark Working Group        (Japanese language meeting/call) 

April 9 – 11    ISDA 34th Annual General Meeting – Hong Kong         Grand Hyatt Hong Kong

 April 16      ISDA Symposium® IM Big Bang: Future of Initial Margin (IM) Documentation & ISDA Create   Fukuracia Marunouchi OAZO
(Japanese language symposium – translation from English to Japanese will be provided)