Financial Benchmarks

An entirely new framework which affects administrators, contributors and users

Wednesday, March 7, 2018
Hong Kong

Member $650 U.S.

Non-Member $750 U.S.

Register for Financial Benchmarks

Regulatory intervention on financial benchmarks was not initially part of the regulatory plan agreed by G20 leaders in 2009 but became a focus after some high profile cases of manipulation (e.g., LIBOR). Policymakers globally have been focusing on strengthening key benchmarks to ensure that they are as robust as possible and reduce any likelihood of their manipulation. Much of this work is based on 2013 Principles for Financial Benchmarks published by IOSCO. Currently, the Financial Stability Board is leading and coordinating work at the global level. In the EU, regulation on financial benchmarks applies as of January 1, 2018. In addition to concerns over robust benchmarks and preventing manipulation, authorities in key financial centers are encouraging the market to develop alternative, nearly risk-free rates and designate fallbacks for contracts that continue to reference key inter-bank rates.

Educational Credits

6 CPD Credit Hours Available (Hong Kong) 

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Wednesday, March 7, 2018

8:15 AM Registration and Morning Coffee

9:00 AM Introduction and Welcoming Remarks Keith Noyes

Keith Noyes, Regional Director, Asia Pacific, ISDA

9:15 AM Introduction to IOSCO Principles for Financial Benchmarks, Global Benchmark Reform and Strengthening Existing Benchmarks Moderator: Jing Gu, Jack Cheung, Francis Edwards

This session will review the key events that led to benchmark reform efforts and the IOSCO principles on which these reforms are based. The session will also cover the benchmark reforms proposed by the Financial Stability Board to strengthen existing benchmarks and other reference rates, and focus on the progress to date on what has become known as IBOR+.

Moderator: Jing Gu, Senior Counsel, ISDA
Jack Cheung, Chief Executive Officer, Treasury Markets Association
Francis Edwards, Partner, Clifford Chance

10:15 AM Development of Alternative Risk-Free Rates Naveen Khanna, Keith Noyes, Tasos Zavitsanakis

As well as strengthening existing benchmarks and other potential reference rates, authorities are encouraging market participants to develop alternative, nearly risk-free, reference rates (RFRs). This session will provide an overview of the background to the development of RFRs, consider rates selected and current efforts underway to transition to those rates in the UK, US, and Japan and highlight potential issues for users to consider.

Naveen Khanna, COO, Rates & Currencies Trading, APAC Global Markets, Bank of America Merrill Lynch
Keith Noyes, Regional Director, Asia Pacific, ISDA
Tasos Zavitsanakis, Consulting Director, Advisory Services, PricewaterhouseCoopers

11:15 AM Morning Break

11:30 AM Development of Fallbacks for IBORs Jing Gu, Subramanian Natarajan

As well as encouraging market participants to develop alternative RFRs, authorities are encouraging market participants to designate fallbacks for contracts that continue to reference IBORs, which would apply in the event that an IBOR is permanently discontinued. This session will provide background and objectives for this work as well as an overview of issues identified to date and potential solutions, including issues relating to development of term structure and credit spread for RFRs and migration to the alternative RFRs through amendments to the 2006 Definitions and use of ISDA protocol.

Jing Gu, Senior Counsel, ISDA
Subramanian Natarajan, Senior Legal Counsel, Global Banking & Markets Legal, HSBC

12:30 PM Luncheon

1:45 PM The EU Regulation on Financial Benchmarks Melody Ma, Simon McKnight

This session will cover:

  • Regulatory timeline and overview of the regulation
  • The scope of financial benchmarks – users’ perspective
  • Proportionality, governance, transparency and registration – key provisions for administrators
    and contributors
  • The recognition of non-EU benchmarks (equivalence, recognition, endorsement)
  • Regulatory impetus for Article 28(2) of the EU Benchmark Regulation
  • The scope of the obligation to plan for material change or cessation of a benchmark
Melody Ma, Assistant General Counsel, ISDA
Simon McKnight, Partner, Simmons & Simmons (London), Foreign Legal Consultant (England & Wales) at Simmons & Simmons in Hong Kong

3:00 PM ISDA 2017 Benchmarks Supplement Michael Hardy, I-Ping Soong

This session will cover the 2017 ISDA Benchmarks Supplement which enables parties to include new provisions into confirmations referencing certain sets of definitions and provisions published by ISDA in order to address the requirements under Article 28(2) of the EU Benchmark Regulation.                      

Michael Hardy, Managing Associate, Linklaters
I-Ping Soong, Counsel, Capital Markets, Linklaters

4:00 PM Afternoon Break

4:15 PM Benchmark Regulation in the Asia Pacific Region Tom Jenkins, Catherine Stemp

This session will cover the benchmark reforms and regulation in the Asia-Pacific region such as in Australia and Singapore.

Tom Jenkins, Partner, KPMG China
Catherine Stemp, Executive Director and Senior Counsel, Goldman Sachs

5:00 PM Conference Concludes

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The Excelsior, Hong Kong, 281 Gloucester Road, Causeway Bay, Hong Kong. Phone +852 2894 8888

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Jack Cheung

Chief Executive Officer

Treasury Markets Association

Francis Edwards

Partner

Clifford Chance

Jing Gu

Senior Counsel

ISDA

Michael Hardy

Managing Associate

Linklaters

Tom Jenkins

Partner

KPMG China

Naveen Khanna

COO, Rates & Currencies Trading, APAC Global Markets

Bank of America Merrill Lynch

Melody Ma

Assistant General Counsel

ISDA

Simon McKnight

Partner, Simmons & Simmons (London)

Foreign Legal Consultant (England & Wales) at Simmons & Simmons in Hong Kong

Subramanian Natarajan

Senior Legal Counsel, Global Banking & Markets Legal

HSBC

Keith Noyes

Regional Director, Asia Pacific

ISDA

I-Ping Soong

Counsel, Capital Markets

Linklaters

Catherine Stemp

Executive Director and Senior Counsel

Goldman Sachs

Tasos Zavitsanakis

Consulting Director, Advisory Services

PricewaterhouseCoopers

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Intermediate

Some knowledge of derivatives documentation is assumed. No advance preparation is required.

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