Benchmark reform – BBSW fallbacks

Benchmark reform – BBSW fallbacks

Benchmark reform – BBSW fallbacks

Apr 29 2021
The ASF, with industry input, submitted a letter on 12 March in response to the Reserve Bank’s request for feedback on BBSW fallbacks in RBA-eligible securities of 1 February.  This was followed up by a meeting between the ASF and the RBA on 23 March during which the issues raised in the ASF submission were discussed in detail.  It was agreed that the ASF would focus on drafting a simple proposed fallback waterfall and endeavour to work towards meeting the RBA’s timetable for publishing its revised repo eligibility criteria (incorporating benchmark fallbacks) by mid-2021.

As part of the process of developing benchmark fallback guidance for the securitisation industry, the RBA recommended that the ASF liaise with the ASX (as benchmark administrator) and ASIC (as regulator) particularly in relation to discussions around ‘cessation’ or temporary and permanent non-publication of benchmarks.  The ASF is in the process of having discussions with the ASX and ASIC.  Insight from those meetings will be considered in the development of the fallback guidance template.  The focus of the ASF benchmark lawyer working group is on producing the fallback guidance.  It is proposed that the draft guidance will be socialised among member organisations for internal testing and feedback.
 
Please contact Robert Gallimore (Policy Executive, ASF) with any queries.