On June 17, 2019, ISDA responded to the International Accounting Standards Board’s (IASB) exposure draft on interest rate benchmark reform (ED/2019/1). The letter welcomes the steps taken by the IASB to amend International Financial Reporting Standards (IFRS) in response to the challenges posed by the interbank offered rates (IBOR) reform in relation to ‘phase-one’, or the uncertainty caused by the IFRS’s hedge accounting forward-looking rules.
However, the response points out that the IASB should accelerate the work to address the next phase of issues arising from IBOR reform. Some matters, such us the continuity of hedge relationships upon transition to risk-free-rates and the relief from hedge effectiveness, are imminent and are especially urgent. ISDA requests the IASB to consider ‘phase-two’ in parallel with completing the phase-one amendments.
Documents (1) for ISDA Response to IASB on Benchmark Reform
Latest
Maintaining Focus on Basel III Endgame Recalibration
In its original form, the US Basel III endgame proposal would have resulted in disproportionate increases in capital for trading book activities, forcing banks to make difficult choices about their participation in certain businesses. After two-and-a-half years, a revised proposal...
IRRBB Management in EMDEs
Interest rate risk in the banking book (IRRBB) has become a growing priority for banks and regulators in emerging market and developing economies (EMDEs). As many of these countries face monetary tightening cycles and ongoing macroeconomic volatility, bank balance sheets...
Response to CPMI-IOSCO on Consultation
On February 5, ISDA and FIA responded to the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs)....
Trading Book Capital: Scott O'Malia Remarks
Trading Book Capital: Capital Conundrum, Navigating Basel III Endgame February 5, 2026 Welcoming Remarks Scott O’Malia, ISDA Chief Executive Good afternoon, and welcome to ISDA’s Trading Book Capital event – it’s great to be here in New York. We...