.CFTC Commissioner Rostin Behnam described recent developments related to LIBOR,
margin and swap execution facility ("SEF") reform.
At the ISDA 24th Annual General Meeting, Mr. Behnam reported
that (i) ISDA is
updating its definitions to incorporate new benchmark fallbacks
and is intending to publish a protocol to permit market
participants to include fallbacks in legacy contracts, (ii) the
Alternative Reference Rates Committee met to identify an alternative risk-free reference,
and (iii) the CFTC Market Risk Advisory Committee formed an
Interest Rate Benchmark Reform
Subcommittee to focus on the transition from LIBOR to the
Secured Overnight Financing Rate.
On derivatives margin, Mr. Behnam reported that a group of
regulatory authorities provided information to BCBS-IOSCO on the
implementation of initial margin requirements for the 2020
phase-in. Mr. Behnam noted the BCBS-IOSCO
statement on the implementation of derivatives margin
requirements, and said that
