Topic: Benchmarks

APRA changes capital requirements, favours small banks

Australia’s new bank capital framework has introduced a two-tier system with simplified requirements for small banks – but while the regulator says it won’t be asking big banks to raise more capital, Macquarie says it nevertheless anticipates a A$2.2 billion hit to its capital surplus.

01 December 2021

FCA confirms synthetic Libor “at least for 2022” – but ESMA warns over incompatibility

The UK Financial Conduct Authority has confirmed it will allow the temporary use of ‘synthetic’ sterling and yen Libor rates after the looming December deadline for the benchmark’s cessation – but EU regulators have warned the synthetic is not compatible with their benchmark rules.

24 November 2021

FCA widens definition of legacy contracts for synthetic Libor

The UK’s Financial Conduct Authority has set out plans for its “synthetic” version of the Libor benchmark as its end date approaches, and clarified which contracts will be permitted to use it.

04 October 2021

Sofr confirmed as US dollar Libor replacement

The United States’ dedicated benchmark reform committee has officially endorsed Sofr as an alternative to dollar Libor.

02 August 2021

“Regulatory patchwork”: major banks face market manipulation suit

New Mexico’s sovereign wealth fund has accused subsidiaries of several of the world’s largest banks of taking advantage of a “patchwork of regulatory oversight” to manipulate the benchmark prices that value certain financial contracts at settlement.

08 July 2021

FCA proposing extended Libor for sterling and yen settings

The UK’s Financial Conduct Authority has proposed allowing the use of some yen and sterling-denominated Libor interest rates beyond the 31 December cut-off, but is warning market participants not wait for a “potential synthetic solution”.

28 June 2021

ISDA consults on Libor swap rate fallbacks, SEC chair Gensler warns against Bloomberg alternative

The International Swaps and Derivatives Association has asked market participants to provide feedback on fallback frameworks for US dollar and sterling Libor swap rates, while SEC chair Gary Gensler warned firms against switching to Bloomberg’s BSBY rate as a replacement due to “a heck of an economic incentive to manipulate it”.

14 June 2021

OCBC bondholders consent to £250 million Libor switch

Singapore’s OCBC Bank, advised by Linklaters, has won approval from bondholders to switch the benchmark underpinning millions of pounds in covered bonds from Libor to a new risk-free rate.

10 June 2021

“Days not weeks”: CFTC and Fed groups back accelerated Libor departure

The United States’ Commodity Futures Trading Commission’s benchmark reform committee has called for a swifter move away from Libor in interdealer swap trades, to speed up the production of a term rate for its replacement benchmark.

09 June 2021

FCA sets out its “tough legacy” plans

The UK’s Financial Conduct Authority has announced what factors it plans to consider when permitting so-called “tough legacy” contracts to continue using a synthetic Libor – but practitioners have labelled the update “disappointing” for not defining what contracts the regulator will count as “tough legacy”.

28 May 2021

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