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
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