Compliance with "IOSCO Principles for Financial Benchmarks (19 Principles)"

March 19, 2020

General Incorporated Association JBA TIBOR Administration

JBA TIBOR Administration (Chairman Akihiro Wani) ("JBATA") is pleased to publish "Compliance with "IOSCO Principles for Financial Benchmarks (19 principles)'" , which is a self-assessment of TIBOR calculations and publications in accordance with "Final Report on Principles for Financial Benchmarks (IOSCO Principles) published by the International Organization of Securities Commissions("IOSCO").

In addition, JBATA has developed "Policy on Material Changes in the Definition or Calculation Method and Continuous Suspension of the JBA TIBOR Publication" (the "Policy"). This was to address JBATA's two challenges specified in Principle 13 (Transition) of "Compliance with 'IOSCO Principles for Financial Benchmarks' (19 principles)"[1] published in last year (March 7, 2019) - "identifying appropriate alternative benchmarks in the event that the JBA TIBOR cannot be used or its publication is suspended" and "establishing a process and policy for transitioning to the alternative benchmark" - and to respond to globally heightened demand for fallbacks[2] and other factors.

With respect to the outstanding challenge related to Principle 13 (Transition), JBATA intends to undertake public consultation and other outreach activities regarding candidate benchmarks for the alternative benchmark of the JBA TIBOR (the fallback rate) in FY 2020 onwards with a view to further enhancing the robustness of the JBA TIBOR. JBATA will fully consider comments from wide-ranging market related parties and reflect these comments as provisions in the Policy.[3]

JBATA will undertake efforts to maintain and enhance the reliability and transparency of the JBA TIBOR, including discussions to develop a robust fallback, and implement measures so that the JBA TIBOR will continue to be internationally recognized as the benchmark that is compliant with the IOSCO Principles and to be widely used as one of the major JPY interest rate benchmarks.

【Inquiries】 Operation Department, General Incorporated Association JBA TIBOR Administration
Phone: +81 (0)3-6262-6788