Public Consultation on fallback issues for JBA TIBOR

August 1, 2022

General Incorporated Association JBA TIBOR Administration

JBA TIBOR Administration ("JBATA") (the Chairperson: Satoshi INOUE) has today released this public consultation on fallback issues for JBA TIBOR ("Public Consultation") to seek to solicit comments from a wide range of market participants.

In response to Principles for Financial Benchmarks - Final report - ("IOSCO Principles")　published by the International Organization of Securities Commissions in July 2013 and other initiatives, JBATA implemented "First Phase of JBA TIBOR Reform" with a primary aim of integrating and clarifying the calculation and determination processes of reference banks' submission rates.

While based on First Phase of JBA TIBOR Reform and the progress in subsequent discussions, JBATA periodically evaluates that compliance with the IOSCO Principles has been achieved, JBATA has identified some remaining issues for Principle 7(Data sufficiency) and Principle 13 (Transition)[1] with a view to further enhancing the transparency, robustness, and reliability of JBA TIBOR. To solve these issues and fully be compliant with the IOSCO Principles, JBATA has launched an initiative called "Second Phase of JBA TIBOR Reform".

The Public Consultation primarily focuses on the issues associated with Principle 13[2] (Transition).

If you have any comments on the consultation questions in the Public Consultation, please submit them by September 30, 2022 in accordance with the following procedures.

Results of the Public Consultation, taking into account the views expressed by stakeholders, is expected to be published by March 31, 2023.

[Public Consultation procedures]

(1) Consultation period
September 30, 2022

(2) How to submit your comments
Comments shall be submitted by e-mail to:
　contact@jbatibor.or.jp

【Guidance】
Your comment shall be titled "Comments on Public Consultation on fallback issues for JBA
TIBOR" and shall include the following information in the specified format:
・Name;
・Contact information (Phone number, e-mail address);
・Name of the legal entity or organization (if you are a member of any); and
・Your answers and reasons for your opinions on each question

【Reminder】
Personal information (e.g. name and contact information) included in the comment will be used when JBATA needs to contact you to inquire about unclear matters in comments. For
further detail regarding the treatment of personal information, see our Privacy Policy.

【Contact information for any inquiry regarding the Public Consultation】
Office for TIBOR Reform, General Incorporated Association JBA TIBOR Administration
E-mail : contact@jbatibor.or.jp

Public Consultation on fallback issues for JBA TIBOR
Answer format.xlsx

[1]https://www.jbatibor.or.jp/english/news/compliance_with_iosco_principles_for_financial_benchmarks_19_principles.html

[2] To solve the remaining issue for Principle 7 (Data Sufficiency), JBATA is engaging in discussions on the possibility of permanent cessation of Euroyen TIBOR which is currently deemed as the most likely option and expects that the timing of permanent cessation of Euroyen TIBOR, if adopted, would be at the end of December 2024
JBATA intends to publish another consultation on whether to discontinue Euroyen TIBOR within the fiscal year ending March 31,2024.