The Financial Stability Board (FSB) has called on the International Swaps and Derivatives Association (ISDA) to include a pre-cessation trigger as standard language in definitions of new derivatives, warning of potentially disruptive market fragmentation as some interbank offered rates (Ibors) near a drop-off in relevance.
In a letter co-authored by Andrew Bailey, chief executive of the UK Financial Conduct Authority, and John Williams, CEO of the Federal Reserve Bank of New York, the FSB urged ISDA to include pre-cessation triggers alongside cessation triggers as standard language new derivatives definitions, and in a single
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