On 6 October 2020, ISDA responded to the consultation on the European Commission’s (EC) proposal amending the European Benchmarks Regulation (BMR) with respect to the critical benchmarks regime and FX spot benchmarks.

The ISDA response focuses on the suggested statutory power to mandate e replacement benchmark for critical interest rate benchmarks subject to cessation such as LIBOR, in particular in the context of the ISDA IBOR Fallbacks, the territorial and product scope of the power, and the interaction with other global ‘tough legacy’ solutions. In addition and with respect to third country benchmarks, ISDA reiterated its view that the BMR requires a holistic reform in order to establish a functioning third country regime whilst also addressing the EC’s suggested exemption power for non-deliverable FX rates.

Contacts: Stevi Iosif (SIosif@isda.org) / Rick Sandilands (RSandilands@isda.org) / Kai Moritz (kmoritz@isda.org)