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).
Latest
ISDA Publishes Updated ISDA SIMM Governance
ISDA has published an updated version of the ISDA SIMM® Governance Framework, which sets out the principles under which the ISDA Standard Initial Margin Model® operates and the process through which it will be reviewed and amended on a consistent...
ISDA Response to PRA IMA Consultation
On September 18, ISDA, the Association for Financial Markets in Europe, the Institute of International Finance and UK Finance submitted a joint response to the UK Prudential Regulation Authority consultation on adjustments to the internal model approach (IMA) for the...
Calibration Test – IQ September 2026
Calibrating capital requirements is a highly complex undertaking and getting it wrong can have serious consequences. Too much lenience might lead to banks holding insufficient capital to mitigate their risks. But excess conservatism can put balance sheets under strain, forcing...
US Treasury Repo Clearing Indicators July 2026
The ISDA-Actrix US Treasury Repo Market Clearing Indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, a key objective of the Securities...