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
Response to FCA on Commodity Derivatives Clearing
On April 9, ISDA, the Commodity Markets Council Europe (CMCE), Energy Traders Europe (ETE) and FIA jointly responded to Chapter 7 of the UK Financial Conduct Authority’s (FCA) Quarterly Consultation CP26/8 on increasing the clearing threshold for commodity derivatives under the UK...
Response on EC’s SFR Proposal
On April 9, ISDA published technical comments on the European Commission’s (EC) proposed Settlement Finality Regulation (SFR) as it applies to designated EU systems and registered third-country systems. One significant concern is that the scope of insolvency protections provided to...
Natixis CIB Adopts ISDA’s DRR
ISDA has announced that Natixis CIB has adopted ISDA’s Digital Regulatory Reporting (DRR) solution, enabling the bank to meet regulatory reporting requirements more efficiently and accurately. The ISDA DRR uses the Common Domain Model (CDM) – an open-source data standard...
Paper on MIFIR PTT
On April 7, ISDA, the Association for Financial Markets in Europe (AFME), the International Capital Market Association (ICMA) and the European Banking Federation (EBF) published a paper on proposals relating to post-trade transparency (PTT) under the Markets in Financial Instruments...