Compliance with "IOSCO Principles for Financial Benchmarks (19 Principles)"
March 25, 2022
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)'Compliance with 'IOSCO Principles for Financial Benchmarks (19 principles)'" which is a self-assessment of JBA 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").
As described in this self-assessment, JBATA announced in March 2021 that the timing of "retaining Japanese Yen TIBOR and discontinuing Euroyen TIBOR", if adopted, would be at the end of December 2024 given the result of 1st public consultation Approach for Integrating Japanese Yen TIBOR and Euroyen TIBOR published in 2019, and subsequent developments regarding the timing of the permanent cessation of LIBOR.[1]
Assuming that Euroyen TIBOR will be permanently ceased at the end of December 2024, it would be desirable that appropriate alternative benchmarks (fallback rates) that meet the needs of using JBA TIBOR be identified prior to the permanent cessation. JBATA intends to undertake a public consultation for the summer of 2022 or later to seek comments on fallbacks for cash products referencing TIBOR.[2]
JBATA will continue to be committed to maintaining and enhancing the transparency, robustness and reliability of the JBA TIBOR, and will 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] General Incorporated Association JBA TIBOR Administration
Email：contact＠jbatibor.or.jp
[1]
https://www.jbatibor.or.jp/english/news/Compliance_with_IOSCO_19principles_2021.html
This statement should not be read as announcing that the Euroyen TIBOR benchmark has
ceased, or will cease (at the end of December 2024), to be provided permanently or indefinitely, in the context of language adopted by ISDA. In the future, JBATA will plan to seek comment on the specifics of the reform and timing through public consultation.
[2]
In this public consultation, in order to enhance robustness of JBA TIBOR, JBATA intends to seek comments on candidates of fallback rates for not only Euroyen TIBOR but also for Japanese Yen TIBOR.
【Note】Currently, the permanent cessation of Japanese Yen TIBOR is not discussed.