DOCSLIB.ORG

Offshore RMB Express Issue 75 ‧ May 2020 Contents

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Offshore RMB Express Issue 75 ‧ May 2020 Contents Offshore RMB Express Issue 75 ‧ May 2020 Contents Part 1 Market Review 1 Part 2 Policy and Peers Updates 4 Part 3 Special Topic 7 Part 4 Chart Book 14 Editors： Lynn Zhang Tel ：+852 2826 6586 Email : [email protected] Sharon Tsang Tel ：+852 2826 6763 Email: [email protected] Matthew Leung Tel：+ 852 3982 7177 Email: [email protected] Market Review Offshore RMB market stabilized after financial market turbulence It has been 3 months since the World Health Organization announced Covid-19 constituted as a Public Health Emergency of International Concern (PHEIC). The virus finally starts to show signs of peaking. After a wave of financial turbulence, we see a decrease in risk aversion. Throughout the period, RMB showed resilience and fluctuated between 7.05 and 7.10 for most of the time. Major offshore RMB business indicators improved, with both Hong Kong RMB deposits and cross border trade remittance numbers reaching recent years’ high. Foreign institutions continued to increase China bond holdings, while Bond Connect provides additional service. I. RMB showed resilience and year. The International Monetary Fund (IMF) continued two-way fluctuation in April predicts the world's current economic crisis to lead to the worst downturn since the Great Coronavirus outbreak has caused an Depression. Risk aversion is expected to unprecedented challenge to the global continue in financial markets, supporting economy, bringing economic activities of USD. RMB has shown resilience, stabilizing most countries to a halt. The US Dollar Index after a wave of depreciation since the (DXY) retreated a bit after reaching record beginning of the year and fluctuating highs last month, but remained relatively high between 6.84 and 7.13. It remained relatively at around 100 in April, posing pressure to stable compare to European and emerging RMB. CNH remained weak, and gently rose market currencies. Recently, there were to 7.05 in mid-April after falling to 7.13 at heated debates about issues regarding start of the month, then stabilizing at 7.09. As Covid-19 in the US, and the RMB may face of April 30, the RMB’s central parity rate short term volatility if the debates trigger against the USD closed at 7.0571, down another round of trade disputes. In general, 0.4% MoM. CNH closed at 7.817, down China’s economy is robust with strong 0.17% MoM. CNY closed at 7.0633, down fundamentals. Also, there is interim success 0.27% MoM. for curbing the virus in China. From medium to long term perspective, RMB is expected to Europe and the US are likely to extend maintain a two-way fluctuation trend. Covid-19 lockdowns to the second half of the Offshore RMB Express 1 Market Review CNH Hibor was stable in April. As of April 29, payments currencies increased by 38.5%. the O/N, 1-week and 3-month CNH HIBOR rates were 1.317%, 1.455% and 2.247%, III. Foreign institutions continued to respectively. increase China bond holdings; Bond Connect provides additional service II. Major offshore RMB business indicators reached recent years’ high Net capital inflow of foreign holdings in China bonds was RMB 73.6 billion in Q1 2020. As By the end of March 2020, RMB deposits in of March 2020, foreign holdings in Chinese Hong Kong amounted to RMB 664.2 billion, bonds reached RMB 2.26 trillion, with a up by 4.0% MoM and up by 10.3% YoY. With monthly net outflow of RMB 20 billion. the addition of RMB 35.8 billion of RMB According to statistics of ChinaBond, net Certificate of Deposits, RMB capital pool of capital inflow of foreign holdings in China Hong Kong amounted to RMB 700 billion, a bonds was RMB 43.3 billion, and total foreign 3.5-year high. RMB loans outstanding in holdings in Chinese bonds reached RMB 2 Hong Kong were RMB 157.8 billion, down by trillion for the first time as of April 2020. 1.1% MoM and up by 37.3% YoY. The total China sees progress in controlling the virus, remittance of RMB for cross-border trade and the economy starts to rebound with settlement was RMB 645.7 billion in March, sufficient foreign reserves. Foreign the highest level since December 2015, up institutions continue to increase their by 39% YoY and up significantly by 59.6% holdings of RMB assets for the purpose of compared to beginning of the year. RTGS risk diversification. turnover was RMB 22 trillion in April 2020, down by 25.2% MoM. As of April 2019, dim In Q1 2020, Bond Connect averaged 197 sum bond issuance amounted to RMB 43.0 trading tickets per day, with average daily billion (including RMB 40 billion of central turnover of RMB 19.3 billion. In April, trading bank bills). and settlement services broadened to support Bond Connect investors to tap the According to a SWIFT report in March 2020, defaulted bond market in China. Bond the RMB is the fifth most active currency for Connect Company Limited put in place a domestic and international payments by guidebook, providing step-by-step guidance value, with a share of 1.85%, behind USD, for participation. EUR, GBP and JPY. RMB payments value increased by 21.5% MoM, while in general all . 2 Offshore RMB Express Market Review In April, trading tickets totaled 3935 for the scheme welcomed its first investor from month, while the trading volume and average Finland, along with 65 new investors, and daily turnover reached RMB 319.4 billion and expanded its coverage to 32 jurisdictions RMB 15.2 billion respectively. Policy bank across the globe with 1,883 global bonds, Chinese government bonds and institutional investors, including 70 of the top NCDs drew the most interests, accounting 100 global asset management companies. for 51%, 30% and 15% of the monthly trading volume. In the same month, the Offshore RMB Express 3 Policy and Peers Updates PBOC & SAFE Removed QFII / RQFII Investment Quotas and Promoted Further Opening-up of China's Financial Market In order to implement the deployment of the central government on further opening up China’s financial market, the People’s Bank of China (PBoC) and the State Administration of Foreign Exchange (SAFE) issued the Regulations on Funds of Securities and Futures Investment by Foreign Institutional Investors (PBoC & SAFE Announcement〔2020〕No. 2, hereinafter referred to as the Regulations), to standardize and simplify administrative requirements on the remittance and repatriation of funds as well as currency exchanges by foreign institutional investors, aiming to better facilitate foreign investors’ participation in China’s financial market. The key points of the Regulations are as follows. Firstly, restrictions on investment quota of Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as Qualified Investors) are removed. Qualified Investors will no longer need to apply for any investment quota from SAFE. Instead, they shall entrust their main custodians to make a registration with SAFE. Secondly, Qualified Investors may freely choose the currency and timing of their inward remittance. Thirdly, the procedures for Qualified Investors’ repatriation of securities investment income are significantly simplified, replacing special audit report on investment returns issued by a Chinese certified public accountant and tax clearance or tax filing certificates with Tax Commitment Letters signed by Qualified Investors. Fourthly, the limits on the number of custodians are scrapped. A single Qualified Investor may choose multiple domestic custodians, and appoint one custodian as the main custodian. Fifthly, foreign exchange risk and investment risk management mechanism for Qualified Investors' domestic securities investment are further improved. Lastly, PBoC and SAFE will strengthen on- going and ex-post supervision. 4 Offshore RMB Express Policy and Peers Updates Yunnan cross border RMB settlements recorded a YoY growth of 12.8% in Q1 According to the PBoC’s Kunming branch, in the first quarter of 2020, cross-border RMB receipts and payments in Yunnan Province reached 12.8 billion yuan, a year-on-year growth of 12.8%. Renminbi is the second largest cross-border settlement currency in Yunnan after the US dollar, accounting for 32.5% of total cross-border receipts and payments in the first quarter. Since 2010, Yunnan Province has become the second pilot region in China to carry out cross-border RMB settlement, and cross-border RMB business has developed rapidly. By the end of 2019, its cross-border RMB settlement had reached 522.286 billion yuan. China unveiled guideline on improving market-based allocation of production factors On April 9th, the Communist Party of China Central Committee and the State Council issued a guideline on improving the market-based allocation mechanism of production factors in a bid to further facilitate the free and orderly flow of factors and stimulate market vitality. According to the document, China will expedite the development of the bond market through a variety of measures, including, but not limited to, enlarging its scale and enriching the bond varieties, and promoting the connectivity with offshore bond markets. The information disclosure standards for corporate credit bond will be unified and the bond default settlement mechanism will be improved. Exploration for a registration-based issuance system for corporate bonds will be put on the agenda. China will strengthen the unified access management of credit rating agencies to the bond market to build up the industry's benign development. Offshore RMB Express 5 Special Topics Implementation of Currency Swap Agreements between the Fed and Counterparts, and Considerations for Supporting International Liquidity through RMB Swap Lines Ying Jian, Senior Economist The wide use of USD across the globe has led to rapid development of international financial market, but may also lead to a global liquidity crisis.
Load more

Recommended publications
  • Interbank Offered Rates (Ibors) and Alternative Reference Rates (Arrs)
    VERSION: 24 SEPTEMBER 2020 Interbank Offered Rates (IBORs) and Alternative Reference Rates (ARRs) The following table has been compiled on the basis of publicly available information. Whilst reasonable care has been taken to ensure that the information in the table is accurate as at the date that the table was last revised, no warranty or representation is given as to the information in the table. The information in the table is a summary, is not exhaustive and is subject to change. Key Multiple-rate approach (IBOR + RFR) Moving to RFR only IBOR only Basis on Development of Expected/ Expected fall which forward-looking likely fall- back rate to IBOR is Expected ARR? back rate to the ARR (if 3 Expected being Date from date by the IBOR2 applicable) discontinu continued which which ation date (if Alternative ARR will replaceme for IBOR applicable Reference be nt of IBOR Currency IBOR (if any) )1 Rate published is needed ARS BAIBAR TBC TBC TBC TBC TBC TBC TBC (Argentina) 1 Information in this column is taken from Financial Stability Board “Reforming major interest rate benchmarks” progress reports and other publicly available English language sources. 2 This column sets out current expectations based on publicly available information but in many cases no formal decisions have been taken or announcements made. This column will be revisited and revised following publication of the ISDA 2020 IBOR Fallbacks Protocol. References in this column to a rate being “Adjusted” are to such rate with adjustments being made (i) to reflect the fact that the applicable ARR may be an overnight rate while the IBOR rate will be a term rate and (ii) to add a spread.
    [Show full text]
  • APAC IBOR Transition Benchmarking Study
    R E P O R T APAC IBOR Transition Benchmarking Study. July 2020 Banking & Finance. 0 0 sia-partners.com 0 0 Content 6 • Executive summary 8 • Summary of APAC IBOR transitions 9 • APAC IBOR deep dives 10 Hong Kong 11 Singapore 13 Japan 15 Australia 16 New Zealand 17 Thailand 18 Philippines 19 Indonesia 20 Malaysia 21 South Korea 22 • Benchmarking study findings 23 • Planning the next 12 months 24 • How Sia Partners can help 0 0 Editorial team. Maximilien Bouchet Domitille Mozat Ernest Yuen Nikhilesh Pagrut Joyce Chan 0 0 Foreword. Financial benchmarks play a significant role in the global financial system. They are referenced in a multitude of financial contracts, from derivatives and securities to consumer and business loans. Many interest rate benchmarks such as the London Interbank Offered Rate (LIBOR) are calculated based on submissions from a panel of banks. However, since the global financial crisis in 2008, there was a notable decline in the liquidity of the unsecured money markets combined with incidents of benchmark manipulation. In July 2013, IOSCO Principles for Financial Benchmarks have been published to improve their robustness and integrity. One year later, the Financial Stability Board Official Sector Steering Group released a report titled “Reforming Major Interest Rate Benchmarks”, recommending relevant authorities and market participants to develop and adopt appropriate alternative reference rates (ARRs), including risk- free rates (RFRs). In July 2017, the UK Financial Conduct Authority (FCA), announced that by the end of 2021 the FCA would no longer compel panel banks to submit quotes for LIBOR. And in March 2020, in response to the Covid-19 outbreak, the FCA stressed that the assumption of an end of the LIBOR publication after 2021 has not changed.
    [Show full text]
  • LIBOR Transition - Impacts to Corporate Treasury
    LIBOR Transition - Impacts to Corporate Treasury April 2019 What is happening to LIBOR? London Interbank Offered Rate (LIBOR) is a benchmark rate that some of the world’s leading banks charge each other for unsecured loans of varying tenors. In 2017, Financial Conduct Authority stated that it will no longer compel banks to submit LIBOR data to the rate administrator post 2021 resulting in a clear impetus and need to implement alternative risk-free rates (RFR) benchmarks globally. End of LIBOR LIBOR transition 2019 - 2021 Post 2021 Risk-free rates SOFR (U.S.) LIBOR (RFR) Phase-out RFRs • an unsecured rate at which banks and SONIA (U.K.) • rates based on secured or unsecured ostensibly borrow from one another transactions replace ESTER (E.U.) • a rate of multiple maturities with… • overnight rates • a single rate Other RFRs… • different rates across jurisdictions How about HIBOR? Unlike LIBOR, the HKMA currently has no plan to discontinue HIBOR. The Treasury Market Association (TMA) has proposed to adopt the HKD Overnight Index Average (HONIA) as RFR for a contingent fallback and will consult industry stakeholders later in 2019. © 2019 KPMG Advisory (Hong Kong) Limited, a Hong Kong limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong. 2 How do I know who is impacted? Do you have any floating rate Do you have any derivative loans, bonds, or other similar contracts (e.g. interest rate Do you need to calculate financialEnsure they instruments have difficult with swap) with an interest leg market value of financial an interestconversations rate referenced to referenced to LIBOR? positions (e.g.
    [Show full text]
  • Reform of Interest Rate Benchmarks for Q4 2019
    Annex 1 Results of Survey on Reform of Interest Rate Benchmarks for Q4 2019 1. Hong Kong banking sector’s exposures referencing LIBOR (LIBOR exposures) (HK$ trillion, as at end-September 2019) Assets Liabilities Derivatives Total amount of LIBOR exposures (note) $4.5 $1.6 $34.6 as a % of total assets or liabilities denominated in 30% 11% N/A foreign currencies LIBOR exposures which will mature after end-2021 $1.5 $0.5 $16.1 of which without adequate fall-back $1.4 $0.5 $14.7 outstanding amount as a % of total LIBOR assets, liabilities or derivatives 33% 32% 46% Note: Includes exposures referencing LIBOR in five currencies (i.e. USD, EUR, GBP, JPY and CHF), as well as benchmarks calculated based on LIBOR, including Singapore Dollar Swap Offer Rate (SOR), Thai Baht Interest Rate Fixing (THBFIX), Mumbai Interbank Forward Offer Rate (MIFOR) and Philippine Interbank Reference Rate (PHIREF). 2. Hong Kong banking sector’s exposures referencing HIBOR (HIBOR exposures) (HK$ trillion, as at end-September 2019) Assets Liabilities Derivatives Total amount of HIBOR exposures $4.7 $0.2 $12.2 as a % of total assets or liabilities denominated in HKD 49% 2% N/A 3. AIs’ preparation for transition to alternative reference rates (ARRs) Key components in AIs’ preparatory work for transition to ARRs % AIs having the component in place Establishment of a steering committee and/or appointment of a 63% senior executive for overseeing the preparation for transition Development of a bank-wide transition plan 38% Quantification and monitoring of LIBOR exposures 48% Impact assessment across businesses and functions 42% Identification and evaluation of risk associated with the transition 38% Identification of affected IT systems and development of a plan to 39% upgrade these systems Identification of affected internal models and development of a plan 36% to modify these models Development of a plan to introduce ARR products 28% Development of a plan to reduce LIBOR exposures 25% Development of a plan to renegotiate LIBOR-linked contracts 24% 4.
    [Show full text]
  • Reforming Major Interest Rate Benchmarks: Progress Report
    Reforming major interest rate benchmarks Progress report 14 November 2018 The Financial Stability Board (FSB) is established to coordinate at the international level the work of national financial authorities and international standard-setting bodies in order to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. Its mandate is set out in the FSB Charter, which governs the policymaking and related activities of the FSB. These activities, including any decisions reached in their context, shall not be binding or give rise to any legal rights or obligations under the FSB’s Articles of Association. Contacting the Financial Stability Board Sign up for e-mail alerts: www.fsb.org/emailalert Follow the FSB on Twitter: @FinStbBoard E-mail the FSB at: [email protected] Copyright © 2018 Financial Stability Board. Please refer to: http://www.fsb.org/terms_conditions/ ii Contents Page Abbreviations and Acronyms ................................................................................................. iv Executive Summary ................................................................................................................. 1 1. International coordination and key cross-jurisdictional themes ........................... 3 1.1 Overview ...................................................................................................................... 3 1.2 Issues related to divergence between IBORs ............................................................... 4 1.3 Approach to
    [Show full text]
  • An Empirical Study on the Linkage Between Offshore and Onshore
    2017 2nd International Conference on Modern Economic Development and Environment Protection (ICMED 2017) ISBN: 978-1-60595-518-6 An Empirical Study on the Linkage Between Offshore and Onshore Interbank Offered Rate Wen-wen ZENG Nanjing University of Science and Technology, Nanjing, Jiangsu, China [email protected] Keywords: CNH-HIBOR, SHIBOR, Linkage, VAR Model. Abstract. This article uses Granger causality test and vector autoregression model to investigate the linkage between SHIBOR and CNH-HIBOR. The results showed that the existence of linkage between two short-term varieties, long-term varieties did not show linkage, and the offshore market has an impact on the onshore market, short-term maturity varieties respond more rapidly to impacts, while long-term maturity varieties respond to impacts that take a long time to digest. The results show that the linkage between China’s inter-bank lending rate and the onshore market is gradually increasing, it’s need to further strengthen SHIBOR’S s the basic position, and constantly improve the quotation mechanism and relax offshore market restrictions. 1. Introduction CNH-Hongkong Inter-bank Offered Rate (CNH-HIBOR) reflects the interest rate level of the offshore RMB market. If the offshore market and onshore market interest rates spread too much, it can easily lead to arbitrage, which is not conducive to the stability and security of the market economy stability and security. Therefore, studying the linkage of inter-bank lending rates will be conducive to promoting marketization of interest rates. The domestic research on the inter-bank lending rate mainly focuses on three aspects: factors that influence the inter-bank lending rate [1]; benchmark interest rate [2,3]; volatility of the inter-bank lending rates [4-7].
    [Show full text]
  • Measuring RMB Market Integration & Interruption
    Measuring RMB Market Integration & Interruption Measuring RMB Integration and Interruption in the Chinese Economic Area: Tests Using Data from Onshore and Offshore Markets Kuo-chun YEH Tai-kuang HO Ya-chi LIN0F 2020.01.06 Kuo-chun Yeh is a Professor at the Graduate Institute of National Development, National Taiwan University, Taiwan. Tai-kuang Ho is a Professor at the Department of Economics, National Taiwan University, Taiwan. Ya-chi Lin is an Assistant Professor at the Department of Economics, Feng Chia University, Taiwan. Correspondence: E-mail: [email protected]. 1 Measuring RMB Market Integration & Interruption Measuring RMB Integration and Interruption in the Chinese Economic Area: Tests Using Data from Onshore and Offshore Markets Abstract Taiwan has had an offshore renminbi (RMB) market on the basis of a cross-strait MOU since September 1, 2014. The RMB markets in the so-called Chinese Economic Area have been completed. Due to political and economic disruptions, whether the three RMB markets are integrated remains in doubt. This paper evaluates integration and interruption of the RMB markets by comparing the traditional approach and the sigma- convergence (or log t) test. The latter provides a more precise indication for market return convergence than does the traditional unit root test. Policy implications to support monetary and financial stability in this area are provided. JEL Classifications: F33, F34, F37. Keywords: renminbi (RMB) offshore markets, global financial crises, sigma- convergence test, CNY, CNH, CNT. 1 Measuring RMB Market Integration & Interruption 1. Introduction On August 31, 2012, Taiwan and mainland China signed the Cross-Strait Currency Settlement Cooperation MOU that established the basic principles and cooperative framework of a currency clearing mechanism for the two sides of the Taiwan Strait.
    [Show full text]
  • Interest Rate Benchmark Reform in Japan
    January 30, 2020 Bank of Japan Interest Rate Benchmark Reform in Japan Speech at the Kin′yu Konwa Kai (Financial Discussion Meeting) Hosted by the Jiji Press AMAMIYA Masayoshi Deputy Governor of the Bank of Japan (English translation based on the Japanese original) 0 Introduction Good afternoon, everyone. It is my pleasure to have the opportunity to speak to you today about the interest rate benchmark reform. The term "interest rate benchmark" may not sound familiar to those who are not engaged in financial businesses. It refers to a rate that reflects the prevailing market rates and serves as the base rate when determining the price of financial transactions. The most famous and widely used interest rate benchmark around the world is the London Interbank Offered Rate, or LIBOR, which is calculated based on the interest rates of interbank transactions in London. LIBOR is presently published for seven tenors ranging from overnight to 12 months, and for five currencies: the U.S. dollar (USD), British pound (GBP), Euro (EUR), Swiss franc (CHF), and Japanese yen (JPY). There are other interest rate benchmarks based on interbank offered rates, such as TIBOR, which is the Japanese yen interest rate benchmark published in Tokyo, and the EURIBOR, which is the Euro benchmark published in the Euro area. Recently, we have also seen the publication for major currencies of overnight interest rate benchmarks called "risk-free rates," which are literally interest rates that are not affected by credit risk. Interest rate benchmarks are actually used in large volume and a broad range of financial transactions including loans, bonds, and derivatives (Figure 1).
    [Show full text]
  • 1. BGC Derivative Markets, L.P. Contract Specifications
    1. BGC Derivative Markets, L.P. Contract Specifications . 2 1.1 Product Descriptions . 2 1.1.1 Mandatorily Cleared CEA 2(h)(1) Products as of 2nd October 2013 . 2 1.1.2 Made Available to Trade CEA 2(h)(8) Products . 5 1.1.3 Interest Rate Swaps . 7 1.1.4 Commodities . 27 1.1.5 Credit Derivatives . 30 1.1.6 Equity Derivatives . 37 1.1.6.1 Equity Index Swaps . 37 1.1.6.2 Option on Variance Swaps . 38 1.1.6.3 Variance & Volatility Swaps . 40 1.1.7 Non Deliverable Forwards . 43 1.1.8 Currency Options . 46 1.2 Appendices . 52 1.2.1 Appendix A - Business Day (Date) Conventions) Conventions . 52 1.2.2 Appendix B - Currencies and Holiday Centers . 52 1.2.3 Appendix C - Conventions Used . 56 1.2.4 Appendix D - General Definitions . 57 1.2.5 Appendix E - Market Fixing Indices . 57 1.2.6 Appendix F - Interest Rate Swap & Option Tenors (Super-Major Currencies) . 60 BGC Derivative Markets, L.P. Contract Specifications Product Descriptions Mandatorily Cleared CEA 2(h)(1) Products as of 2nd October 2013 BGC Derivative Markets, L.P. Contract Specifications Product Descriptions Mandatorily Cleared Products The following list of Products required to be cleared under Commodity Futures Trading Commission rules is included here for the convenience of the reader. Mandatorily Cleared Spot starting, Forward Starting and IMM dated Interest Rate Swaps by Clearing Organization, including LCH.Clearnet Ltd., LCH.Clearnet LLC, and CME, Inc., having the following characteristics: Specification Fixed-to-Floating Swap Class 1.
    [Show full text]
  • EUROPEAN COMMISSION Brussels, 18.9.2013 SWD(2013) 336 Final COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying Th
    EUROPEAN COMMISSION Brussels, 18.9.2013 SWD(2013) 336 final COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the document Proposal for a Regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts {COM(2013) 641 final} {SWD(2013) 337 final} EN EN TABLE OF CONTENTS 1. INTRODUCTION ...................................................................................................................................................................1 2. PROCEDURAL ISSUES AND CONSULTATION OF INTERESTED PARTIES....................................................................................2 2.1. CONSULTATION OF INTERESTED PARTIES ..................................................................................................................................2 2.2. STEERING GROUP...............................................................................................................................................................2 2.3. IMPACT ASSESSMENT BOARD ...............................................................................................................................................3 3. POLICY CONTEXT .................................................................................................................................................................3 3.1. THE CURRENT EU LEGISLATIVE FRAMEWORK ON BENCHMARKS ......................................................................................................3 3.2. NATURE
    [Show full text]
  • Interbank Offered Rate (IBOR) Fallbacks for 2006 ISDA Definitions
    December 18, 2019 Interbank Offered Rate (IBOR) Fallbacks for 2006 ISDA Definitions Supplemental Consultation on Spread and Term Adjustments, including Final Parameters thereof, for Fallbacks in Derivatives Referencing EUR LIBOR and EURIBOR, as well as other less widely used IBORs Executive summary ISDA intends to amend its standard documentation to implement fallback reference rates (fallbacks) for certain key IBORs. The fallbacks will apply if the relevant IBOR ceases based on defined triggers.1 The fallback rates will be the alternative risk-free rates (RFRs) that have been identified for the relevant IBORs as part of recent global benchmark reform work. ISDA previously published a consultation (the July 2018 Consultation2) seeking input on the approach for addressing certain technical issues associated with adjustments that will apply to the RFRs if the fallbacks are triggered. This consultation covered GBP LIBOR, CHF LIBOR, JPY LIBOR, TIBOR, Euroyen TIBOR and BBSW, and requested preliminary feedback in respect of USD LIBOR, EUR LIBOR and EURIBOR. ISDA subsequently published a supplemental consultation (the May 2019 Consultation3) seeking further input on the approach for addressing certain technical issues associated with adjustments that will apply to the RFRs if the fallbacks for USD LIBOR, CDOR or HIBOR are triggered. The May 2019 Consultation also sought feedback on certain aspects of fallbacks for derivatives referencing SOR. 1 The fallbacks will definitely apply upon a permanent cessation of the relevant IBOR. ISDA separately consulted on pre-cessation issues. That consultation closed on July 12, 2019 but is available at: https://www.isda.org/a/md6ME/FINAL-Pre-cessation-issues-Consultation.pdf.
    [Show full text]
  • World Bank Document
    Public Disclosure Authorized ® ® Public Disclosure Authorized ® Public Disclosure Authorized "i'Р ¹ ®' I Public Disclosure Authorized A Worid Bank Glossary Glossaire de la Banque mondiale Glosario del Banco Mundial Glossary of Finance and Debt Glossaire des finances et de la dette Glosario de finanzas y de deuda English-French-Spanish Français-anglais-espagnol Espafiol-4nglés--francés The World Bank Washington, D.C., U.S.A. Copyright @ 1991 International Bank for Reconstruction and Development / The World Bank Banque internationale pour la reconstruction et le d6velopperpent / Banque mondiale Banco Intemacional de Reconstrucci6n y Fomento / Banco Mundial 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Tons droits r6serv6s Reservados todos los derechos First printing: March 1991 Premibre 6dition : mars 1991 Primera impresi6n: marzo de 1991 Manufactured in the United States of America Publi6 aux Etats-Unis d'Amdrique Hecho en los Estados Unidos de Amdrica Library of Congress Cataloging in Publication Data Glossary of finance and debt : English-French-Spanish = Glossaire des finances et de la dette : frangais-anglais-espagnol = Glosario de finanzas y de deuda : espaffol-ingl6s-franc6s. p. cm. - (A World Bank Glossary = Glossaire de la Banque mondiale) ISBN 0-8213-1644-3 1. International finance-Dictionaries 2. Debts, External- -Dictionaries. 3. English language--Dictionaries-Spanish. 4. English language-Dictionaries-French. I. Title: Glossaire des finances et de la dette. II. Title: Glosario de finanzas y de deuda. III. Series: World Bank glossary. HG151.G629 1990 332'.042'03-dc20 90-44772 CIP iii Contents-Table des matieres-Indice Foreword v Avant-propos vi Prefacio vii Terminology of Finance and Debt 1 English-French-Spanish Abbreviations (English) 111 Sigles (frangais) 119 Siglas (Espailol) 125 Terminologie des finances et de la dette Frangais-anglais 129 Terminologiadefinanzas y de deuda Espaiol-Ingls 181 V Foreword This glossary supersedes Borrowing and Lending Terminology, which appeared in 1984.
    [Show full text]