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)
Documents (1) for ISDA Comments on the European Commission’s BMR Review Proposal
Latest
A Positive Step to Improve the FRTB in the EU
As the Basel III capital reforms are finalized for implementation in key jurisdictions, ISDA is maintaining a laser focus on making sure the rules are robust and risk-appropriate. Simply put, if capital requirements are set disproportionately high, this will have...
Trading Book Capital: Scott O'Malia Remarks
Trading Book Capital: Policy Challenges for the EU 2024-2029 Mandate March 25, 2025 Welcoming Remarks Scott O’Malia ISDA Chief Executive Officer Good morning and welcome to ISDA’s trading book capital event. It’s great to be here in Brussels and...
Setting Out the Value Proposition of Derivatives
History enthusiasts may have heard of the Code of Hammurabi, an early legal text from ancient Mesopotamia, carved into a stone slab about 3,700 years ago. The code covers everything from property rights to divorce, but it also recognizes the...
Appropriate Capital Rules Critical for Markets
“Setting capital requirements for globally active banks is a fine balancing act. As regulators learned during the global financial crisis, insufficient capital creates vulnerabilities in the banking sector that can have damaging consequences in times of stress. However, if banks...