Result of public consultation: 1st Consultative Document / Approach for Integrating Japanese Yen TIBOR and Euroyen TIBOR
May 30, 2019
General Incorporated Association JBA TIBOR Administration
We, General Incorporated Association JBA TIBOR Administration ("JBATA") (the chairman: Akihiro Wani), implemented the JBA TIBOR reforms in July 2017 primarily to integrate and clarify the calculation and determination processes of reference banks' submission rates.
Currently, we are discussing the issue of "integrating Japanese Yen TIBOR and Euroyen TIBOR" that was regarded as a medium and long-term issue during the past three JBA TIBOR reform public consultations. To address this issue, we published the first consultative document Approach for Integrating Japanese Yen TIBOR and Euroyen TIBOR ("1st Consultative Document") in October 2018 to seek comments.
The overview of major comments on the 1st Consultative Document is presented in Appendix and we would like to take this opportunity to express our gratitude to those respondents for their comments.
In light of comments received, we will contemplate further actions while deeming "retaining Japanese Yen TIBOR and discontinuing Euroyen TIBOR ('retaining Japanese Yen TIBOR')" as the most likely option of all at this stage. We will devise the specifics of the reforms and work on identifying and streamlining practical issues and tasks, while paying attention to developments in the financial markets and ongoing domestic and international policy discussions, such as those on the cessation of LIBOR.
We then plans to seek comments on the specifics of the reform and timing of their implementation through a second consultation. As to the timing of implementation, we currently envisions a preparation period of approximately two years following the permanent cessation of LIBOR.
Notwithstanding the foregoing, if relevant circumstances necessitate the reforms to be reconsidered which may include a change of approach and specifics as well as changes to the timing of implementation, then we will undertake an additional public consultation at an appropriate time to seek further comments. Such circumstances may include developments in the financial markets (e.g. a significant contraction in the Euroyen TIBOR market), developments in domestic and international policy discussions (e.g. delays in the anticipated permanent cessation of LIBOR), or other similarly relevant factors.
Reference：The analysis of the rate gap between Japanese Yen TIBOR and Euroyen TIBOR