Wed, Mar 7, 2018Event Details for Financial Benchmarks Register Now 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 the 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, the 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.
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Wednesday, April 11, 2018
8:15 AM Registration and Morning Coffee
9:00 AM Introduction and Welcoming Remarks
9:15 AM Introduction to IOSCO Principles for Financial Benchmarks, Global Benchmark Reform and Strengthening Existing Benchmarks
This panel 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+.
10:15 AM Development of Alternative Risk-Free Rates
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 panel 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.
11:15 AM Morning Break
11:30 AM Development of Fallbacks for IBORs
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.
12:30 PM Luncheon
1:45 PM The EU Regulation on Financial Benchmarks
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
- 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
3:00 PM ISDA 2017 Benchmarks Supplement
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.
3:45 PM Afternoon Break
4:00 PM Benchmark Regulation in the Asia Pacific Region
This session will cover the benchmark reforms and regulation in the Asia-Pacific region such as in Australia and Singapore.
5:00 PM Conference Concludes
VenueBack to Top
InterContinental Sydney, 117 Macquarie Street, Sydney 2000 Australia, Phone: +61 2 9253 9000
Course LevelBack to Top
Some knowledge of derivatives documentation is assumed. No advance preparation is required.