Video Interview: Why Should I Update the Fallbacks in My Derivatives Contracts?

On October 23, ISDA launched a supplement that will amend its standard definitions for interest rate derivatives to incorporate robust fallbacks for new IBOR derivatives entered into from January 25, 2021. From that date, all new cleared and non-cleared derivatives that reference the definitions will include the fallbacks.

Simultaneously, ISDA launched the IBOR Fallbacks Protocol, which enables firms to incorporate the fallbacks into their legacy non-cleared derivatives trades with other counterparties that adhere to the protocol. Those changes will also become effective on January 25.

More than a thousand entities have so far adhered to the protocol, but there are some misunderstandings about what the fallbacks are meant to do. Katherine Tew Darras, ISDA’s general counsel, helps explain some of those misperceptions.

If you can’t access the YouTube video above, please click here (best viewed in Chrome).

ISDA AGM Studio: Future Leaders in Derivatives

Following publication of the latest whitepaper from the ISDA Future Leaders in Derivatives (IFLD) program, Collateral and Liquidity Efficiency in the Derivatives Market: Navigating Risk in a Fragile Ecosystem, Joel Clark talks to IFLD participants Koen Ottenheijm, senior treasury and...

Australian Superannuation Funds Use of Derivatives

The funds under management (FUM) of Australian superannuation funds have grown substantially since legislation was introduced in 1992 requiring employer contributions. Over the past five years, total FUM has climbed from approximately A$2.3 trillion ($1.44 trillion) to A$4.1 trillion and...

ISDA AGM Studio: Fabio Fabiani, EY

Fabio Fabiani, partner at EY, speaks with Antonio Corbi, head of accounting and tax services at ISDA, on the International Accounting Standards Board’s dynamic risk management proposal and the application of the Common Domain Model to automate reporting and compliance.