Selection of ESTER as the new euro risk-free rate
On 13 September 2018, the working group on euro risk-free rates recommended the euro short-term rate (ESTER) as the risk-free rate for the euro. ESTER will replace EONIA, which no longer meets the criteria of the EU Benchmarks Regulation ("BMR") and so will see its use restricted as of 1 January 2020. ESTER will also provide a basis for developing fallbacks for contracts referencing EURIBOR, as the compliance of its new hybrid methodology with the BMR will be assessed in 2019 (with no guarantee of a favourable outcome).
Recent LMA Submissions
LMA responds to EU Proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral
LMA responds to EU Proposal for a Regulation on the law applicable to the third-party effects of assignments of claims
LMA responds to EMMI Consultation Paper EURIBOR Hybrid Methodology
LMA launches Green Loan Principles (GLP)
The GLP have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the green loan market, with a view to promoting the development and integrity of the green loan product.
LMA revisions to Chapter 17 of the JMLSG Guidance on the prevention of money laundering and the financing of terrorism in the UK financial services industry go live on JMLSG website
More than 12 months on from the publication of a consultation by JMLSG in 2017 on proposed revisions to Parts II and III of its guidance on the prevention of money laundering and the financing of terrorism in the UK financial services industry (the "Guidance"), Chapter 17, which relates specifically to syndicated lending and which has been re-written by the LMA, has now been approved and published by the JMLSG board.
This video interview with Neil McLeod, Head of Group Treasury Markets Trading at Erste Group Bank AG, considers the ISDA consultation on IBOR fallbacks published in July 2018.
Consultations on LIBOR transition – industry responses required
Two important consultations on LIBOR transition were
launched in July 2018: (i) the Bank of England is seeking comments on the proposed
creation of term SONIA reference rates; and (ii) ISDA is seeking input on approaches
to addressing technical issues with adjustments to apply to fallbacks to risk
free rates. Whilst the LMA will look to respond to the consultations, we
encourage all market participants to submit responses directly to ensure the views
of the loan market are represented.
Click
here to view the BoE consultation (closes 30 September). Click here
to view ISDA's consultation (closes 12 October).
Updated Data Protection Privacy Notice (8 August 2018)
The LMA has made updates to its privacy notice to include references to two new additional service providers engaged by the LMA (Rackspace and Adestra). Click here to access the updated Privacy Notice.