On September 19, 2018, ISDA published the ISDA Benchmarks Supplement (the “Supplement”) to enable parties to include fall back provisions in their trades if a benchmark ceases to be provided by the administrator to the benchmark or if a regulator of the administrator, the applicable central bank or applicable resolution authority announces that the administrator shall cease to provide a benchmark (an “index cessation event”). The Supplement covers the following ISDA definitions booklets:
- 2006 ISDA Definitions;
- 2002 ISDA Equity Derivatives Definitions;
- 1998 FX and Currency Option Definitions;
- 2005 ISDA Commodity Definitions.
The Supplement also introduces the concept of an “Administrator/Benchmark Event” which applies if a benchmark or an administrator is not approved and therefore cannot be used by the parties in accordance with applicable law. Continue Reading