2014 Multilateral Amendment Agreement for IDR Non-Deliverable FX and Currency Option Transactions, Non-Deliverable Swap Transactions and Certain Other Transactions
Open from March 4, 2014 to 5:00 p.m. Singapore time on March 25, 2014

SFEMC, ISDA and EMTA are extending the Submission Deadline.  Please return the entire IDR-MAA (and not just the signature page) via email (scanned copy) to idramend@cliffordchance.com by 12 noon Singapore time on Wednesday March 26, 2014. The original hard copy can reach Clifford Chance Pte Ltd (12 Marina Boulevard, 25th Floor, Tower 3, Marina Bay Financial Centre, Singapore 018982 for the attention of: Paul Landless) after March 26. Please note that this will be the absolute latest time that submissions will be accepted as the list of adherents must be finalized and circulated on Wednesday to enable adhering banks to do the needful.

ABS Benchmarks Administration Co Pte. Ltd. (ABS Co), in consultation with the Singapore Foreign Exchange Market Committee (SFEMC) had announced on February 18, 2014 that it will discontinue the USD/IDR spot rate benchmark (denoted as “IDR VWAP” or “IDR03” in the 1998 FX and Currency Option Definitions) with the last day of publication being March 27, 2014. It has been decided that the above benchmark is no longer necessary given the development of an onshore USD/IDR spot rate benchmark. The onshore USD/IDR spot rate benchmark is reported by Bank Indonesia and published on its website and will be denoted as “IDR JISDOR” or “IDR04” in the 1998 FX and Currency Option Definitions.

IDR VWAP (IDR03) (which is a benchmark based on a “traded” methodology) commenced on August 6, 2013 and the SFEMC had recommended in June 2013 that market participants reference IDR VWAP (IDR03) instead of “IDR ABS” or “IDR01” (which was a benchmark based on a “surveyed” methodology) which was discontinued on August 5, 2013. As IDR JISDOR (IDR04) had only been launched in May 2013, the SFEMC had thought it premature back in June 2013 to recommend a move to IDR JISDOR (IDR04). The SFEMC has now recommended that IDR JISDOR (IDR04) be applied to NDF and other relevant contracts referencing IDR that may be entered into on or after March 28, 2014. The SFEMC has also recommended that parties mutually agree to amend their existing NDF and other relevant contracts referencing IDR VWAP (IDR03) that will remain outstanding on March 28, 2014 to reference IDR JISDOR (IDR04).

For further information, please refer to the ABS Co and SFEMC press release, SFEMC statement and related materials.

Click here for ABS Co and SFEMC press release.

Click here for SFEMC statement.

Click here for SFEMC Explanatory Note.

This Multilateral Amendment Agreement (IDR-MAA) has been published to assist parties wishing to make the amendments referred to above. The IDR-MAA is open to ISDA members and non-members. You need not pay any fee to sign up to the IDR-MAA. Please note that you must sign up to the IDR-MAA no later than 5:00 p.m. Singapore time on March 25, 2014. ISDA and EMTA will publish on their websites the list of parties who have signed up to the IDR-MAA but for ‘Member Only’ access. The list will also be circulated to all parties who have signed up to the IDR-MAA. Please refer to the “Instructions to Signing” attached to the IDR-MAA for more details.