Revision to the "JBA TIBOR Code of Conduct" Reflecting the Result of the 3rd Public Consultation, and Implementation Date of JBA TIBOR Reform, etc.

February 24, 2017

General Incorporated Association JBA TIBOR Administration

We, General Incorporated Association JBA TIBOR Administration ("JBATA") (the chairman: Akihiro Wani), have been considering the JBA TIBOR reforms with a view to maintaining and enhancing the reliability and transparency of JBA TIBOR since our establishment in April 1, 2014.

In July 2014, the "JBA TIBOR Code of Conduct" was revised to: (a) clarify that actual transaction data takes precedence as an input in the calculation and determination process for reference bank's reference rates; and (b) clarify those cases where expert judgment is allowed.

Furthermore, in its report titled "Reforming Major Interest Rate Benchmarks" (published in July 2014), the Financial Stability Board ("FSB") required administrators of major financial benchmarks, including JBA TIBOR, to consider the introduction of alternative benchmarks which are more anchored in actual transactions. In response, we have been further considering the reform of JBA TIBOR.

In November 30, 2016, we published the third consultative document:"Revision to the "JBA TIBOR Code of Conduct", etc. for Implementing the JBA Tokyo Inter Bank Offered Rate ("JBA TIBOR") Reforms" to broadly seek comments on four points of the proposed JBA TIBOR reform, including integration and clarification of the calculation and determination process of reference banks' reference rates.

Comments from users to the third public consultation are summarized in Appendix 1. We would like to take this opportunity to express our gratitude toward your cooperation.

In light of the result of the third public consultation, we will implement the JBA TIBOR reform as following manner. More specifically, necessary revisions will be made, including the "JBA TIBOR Code of Conduct", in order to reflect the proposal in the 3rd consultative document, and JBA TIBOR rates will be calculated and published in accordance with the integrated and clarified calculation and determination process of reference banks' reference rates.

For any legal issues arising from this JBA TIBOR reform in relation to the existing financial contracts, please refer to Appendix 2 "Q&A Regarding the JBA TIBOR Reform" and Appendix 3 "Legal Advice (Memorandum)".

JBATA will continue its efforts to strengthen the JBA TIBOR administration so as to ensure that the JBA TIBOR will be internationally recognized as a benchmark which is in line with the "Principles for Financial Benchmarks" published by the International Organization of Securities Commissions ("IOSCO") and will be widely used as a representative benchmark of Japanese interest rates.

1. Implementation date of the JBA TIBOR reform
Monday, July 24, 2017
　　* 1 From this implementation date, note that the timing of the JBA TIBOR publication will change to "by 1 p.m. of the day".
　　* 2 If it is determined to change the above-mentioned implementation date, we will take a necessary period of time for dissemination and later announce the new implementation date

2. Revision to the JBA TIBOR Code of Conduct, etc.
As described in Appendices 4 to 7, the following rules will be revised as of February 24, 2017 and will take effect on Monday, July 24, 2017.

　　① JBA TIBOR Operational Rules (See Appendix 4.)
　　② JBA TIBOR Code of Conduct (See Appendix 5.)
　　③ Contingency Plan for JBA TIBOR Publication (See Appendix 6.)
　　④ Complaints Consultation Management Rule of JBATA (See Appendix 7.)

3. Discontinuation of 2-month tenor and discontinuation of simultaneous publication of individual submission
First business day of April 2019 (Monday, April 1, 2019)