ISDA releases Hong Kong classification letter for counterparties. The International Swaps and Derivatives Association issued a new clearing classification letter that counterparties can use to notify each other of their status for clearing requirements under the Hong Kong mandatory clearing regime, which will become effective on September 1, 2016. (7/25/2016) ISDA press release.
FSB requests feedback on discussion of compensation tools to address misconduct in banks. The Financial Stability Board published a summary of its roundtable discussion on the use of compensation tools to address misconduct in banks. Comments on the topics discussed in the summary should be submitted on or before August 21, 2016. (7/25/2016) FSB press release.
FSB meets to prepare deliverables for G20 Leaders’ Summit. The FSB met in Chengdu to review its progress in addressing priority areas in advance of the G20 Leaders’ Summit in September. The FSB discussed, among other matters, current market development and vulnerabilities; its annual report on the implementation and effects of financial reforms; macroprudential frameworks and tools; resilience, recovery and resolvability of central counterparties; effective resolution regimes; and implementation of reforms to OTC derivatives markets. (7/21/2016) FSB press release.
FSB provides progress update on implementation of major interest rate benchmark reforms. The FSB released a progress report which examines the implementation of its recommendations to reform major interest rate benchmarks. The report found that the most progress in implementing the reforms has been made by the three major benchmarks of EURIBOR, LIBOR and TIBOR, while reforms of IBORs have not been completed. (7/19/2016) FSB press release.
ISDA research note on effect of clearing and compression on interest rate derivatives. In a research note analyzing the impact of clearing and compression on the interest rate derivatives notional outstanding data reported by the Bank for International Settlements, ISDA found that the overall interest rate derivatives notational has been reduced by approximately 67 percent as a result of portfolio compression. (7/21/22016) ISDA research note.
ISDA issues 2016 Bailin Article 55 BRRD Protocol. ISDA published the ISDA 2016 Bailin Article 55 BRRD Protocol, which is designed to assist certain European entities in complying with Bank Recovery and Resolution Directive requirements to include a contractual term in agreements creating any relevant liability and governed by the law of a third country to ensure their creditors agree to recognize any bailin of those liabilities. (7/14/2016) ISDA press release.
Basel Committee offers guidance on Basel III’s Net Stable Funding Ratio. The Basel Committee on Banking Supervision published frequentlyasked questions and answers concerning the Basel III’s Net Stable Funding Ratio. (7/13/2016) BIS press release.