Revision of JBA TIBOR Code of Conduct
July 4 , 2014
Ippan Shadan Hojin JBA TIBOR Administration
We are pleased to announce the Board of Directors of JBA TIBOR Administration today approved revisions to the JBA Code of Conduct as attached. Summary is as below.
1.Contents of the revision and rationale
① Clearer hierarchy of the type and scope of transactions referenced in the calculation of a reference rate
The type and scope of transaction and its hierarchy in determining reference rates has been at the discretion of the reference bank subject to the definition of JBA TIBOR. The revision clarifies that each reference bank shall take into account transactions between prime banks on the Japan unsecured call market（Euroyen transactions in the Japan Offshore Market in case of Euroyen TIBOR） as a minimum requirement and take precedence as an input into the calculation of reference rates subject to the definition of JBA TIBOR if the transactions are observable ein accordance with the Principle eight "Hierarchy of Data Inputs" of IOSCO Principles for Financial Benchmarks(IOSCO Principles), which was publicized in July 2013.
② Clarification of the criteria for use of expert judgment by reference banks
The revision clarifies the criteria for use of expert judgment by reference banks when submitting rates subject to the IOSCO Principle 11 "Content of the Methodology."
③ Appropriate protection for whistle-blowers
The revision stipulates that reference banks should provide proper protection for whistle-blowers so as not to be treated in an unfair manner when reporting wrong doing through the reference Bank's internal functions or through JBATA .
The revision will be applied from October 6, 2014.
【Inquiries】 Ogura(Mr.), Yamada (Mr.) (Tel.03-5252-3722)