ISDAfix lines up to get its IOSCO fix

On 1 August 2014, ICE Benchmark Administration Limited (IBA) formally assumed the role of ISDAFIX administrator.

IBA confirmed that ISDAFIX will undergo major changes by moving from a polled submission model to a methodology based on actual transactions and/or executable quotes. This reflects one of the key orientations outlined in the IOSCO principles on financial benchmarks. The era of benchmarks determined with a simple rule of thumb and an occasional consideration for one’s own best interest is set to end.

The move should come as good news for the credibility of the benchmark after the notorious issues with ICAP, but there is many a slip twixt cup and lip. IBA also administers the LIBOR, which was found to fall short of compliance with some of the IOSCO principles recently.

IBA should be able to build on the feedback received during the IOSCO-led review in order to properly implement the principles on benchmarks, on time for the wide-scale review announced for early 2015.

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