On August 31, 2021, ISDA submitted a response to the European Commission’s (EC) draft Implementing Act (IA) on the statutory replacement rate for EONIA, a fallback of €STR plus 8.5 basis points. The response discusses the limited scope of power to designate a statutory replacement and the need to avoid a presumption of contractual frustration for contracts without an incorporated fallback. Furthermore, ISDA stressed the importance of adopting the IA in a timely manner, in light of the cessation of EONIA, scheduled for January 3, 2022.
In terms of next steps, the EC will need to adopt a final IA prior to its publication in the Official Journal of the European Union, with the regulation coming into force 20 days after its publication.
Documents (1) for ISDA Responds to EC on EONIA
Latest
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
ISDA Feedback on Identifying Reference Data
On July 20, ISDA submitted feedback to the European Securities and Markets Authority (ESMA) on draft Level 3 guidance on several technical issues caused by the interaction of the recently adopted regulatory technical standard on derivatives transparency (RTS 2) and...
US Basel III Endgame 2026 Update
In March 2026, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation published a new proposal for capital rules known as the US Basel III, based...
Episode 59: Reducing Burdens
As she nears the end of her term as chair of the European Securities and Markets Authority, Verena Ross joins The Swap to discuss progress in simplifying and reducing the burden of EU financial regulation, including transaction reporting. Please view...