24 February 2018
Visit www.capgemini.com/worldreports

Isda commences tender for IsdaFIX benchmark administrator

24 February 2014  |  1530 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)
Register for the webinarvisit www.ebaday.comvisit www.swift.com/your-needs/instant-payments

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11598 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10270 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8383 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
7937 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7655 views comments | 10 tweets | 14 linkedin

Featured job

Competitive
Hong Kong, Asia-Pacific

Find your next job