20 September 2017
Visit http://response.ncr.com

Isda commences tender for IsdaFIX benchmark administrator

24 February 2014  |  1501 views  |  0 Source: Isda

The International Swaps and Derivatives Association, Inc. (ISDA) today published an Invitation to Tender for the role of benchmark administrator for ISDAFIX rates.

The tender is the latest step in ISDA's process to align ISDAFIX with evolving best practices in the setting of benchmark rates by establishing a fully automated rate-setting process.

The successful tenderer will become the new benchmark administrator and calculation agent for ISDAFIX benchmark rates, responsible for:

Governance of all ISDAFIX administrative processes including oversight and decisions of methodology, systems and controls;
Daily operations, including collection of input data and calculation of ISDAFIX rates;
Ex-ante and ex-post checks on submissions to ensure the integrity of the benchmark.

Those firms interested in submitting a tender should contact Catherine Farrer at cfarrer@isda.org by February 28, 2014 to receive the Invitation to Tender document. The deadline to submit a tender response is March 21, 2014. ISDA expects to announce the successful bidder by the end of April 2014. ISDA will continue to support the ISDAFIX benchmark during the transition to a new administrator to ensure continuity and minimize disruption for market participants.

The tender process follows a number of important changes made to the submission methodology process last month, including a standardization of the polling process across currencies. The appointment of the new benchmark administrator will coincide with the next phase of development: moving from the current bank submission-based method to an automated model that utilizes live, executable prices from multilateral trading facilities (MTFs).

The target for the transition to a MTF-based approach is the second quarter of this year for euro swaps, with the US dollar and sterling swaps following by the end of 2014.

The changes to ISDAFIX have been spearheaded by the ISDA Benchmark Committee. The committee was formed to develop strategy and policy recommendations for the ISDA Board regarding interest rate benchmarks with which ISDA is directly involved or which will have an impact on ISDA memDA members, over-the-counter (OTC) derivatives markets, or new and legacy OTC derivative transactions. ISDA arranged for the consulting firm Oliver Wyman to help the committee strengthen the process, governance and controls for the existing ISDAFIX framework and to help develop the MTF-based approach.

In addition to the work to improve the ISDAFIX process, ISDA is also assisting with benchmark reforms on a broader level. Furthermore, ISDA Chairman Stephen O'Connor serves as vice-chairman of the Financial Stability Board's Market Participants Group (MPG).

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.capgemini.comvisit www.vasco.com

Top topics

Most viewed Most shared
JPMorgan Chase chief says he would fire traders dealing in bitcoin for stupidityJPMorgan Chase chief says he would fire tr...
10559 views comments | 16 tweets | 29 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10168 views comments | 6 tweets | 17 linkedin
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
9896 views comments | 21 tweets | 39 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9062 views comments | 6 tweets | 3 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
7525 views comments | 5 tweets | 4 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job