Press Release

TMA WGARR Statement on ISDA IBOR Fallbacks Supplement and Protocol

TMA Working Group on Alternative Reference Rates Welcomes the Forthcoming Launch of the ISDA IBOR Fallbacks Supplement and IBOR Fallbacks Protocol

The TMA Working Group on Alternative Reference Rates (WGARR) welcomes the announcement by the International Swaps and Derivatives Association (ISDA) on 9 October 2020 regarding the forthcoming launch of the IBOR Fallbacks Supplement and IBOR Fallbacks Protocol.  The WGARR supports the upcoming launch of the ISDA supplement and protocol, which could help strengthen the contractual robustness of derivatives contracts. The WGARR encourages TMA Members to adhere to the ISDA protocol to ensure that their derivatives contracts include adequate fallbacks, which could help mitigate the risks associated with the potential cessation of LIBOR after end-2021.

About the TMA Working Group on Alternative Reference Rates

The TMA has established the Working Group on Alternative Reference Rates to facilitate industry-wide discussions on the adoption of alternative reference rates, with a view to promoting Hong Kong financial sector's readiness for the transition away from LIBOR after end-2021 and encouraging the development of financial products based on HONIA, the alternative reference rate identified for HIBOR.

Treasury Markets Association

12 October 2020