ISDA and NAFMII jointly published Chinese language IBOR fallbacks documents

On 30 July 2021, the International Swaps and Derivatives Association, Inc. (“ISDA”) and the National Association of Financial Market Institutional Investors (“NAFMII”) jointly published (i) the IBOR Fallbacks Supplemental Agreement to the 2009 NAFMII Master Agreement (the “Supplemental Agreement”) and (ii) the IBOR Fallbacks Booklet for China Interbank Market Financial Derivative Transactions (the “IBOR Fallbacks Booklet”) (both in Chinese language only). 

The Supplemental Agreement and the IBOR Fallbacks Booklet will enable market participants to include contractual fallbacks for certain interbank offered rates (“IBORs”) in onshore derivatives transactions documented under the 2009 NAFMII Master Agreement (the “NAFMII Master Agreement”).

 The Supplemental Agreement and the IBOR Fallbacks Booklet will become effective on 29 October 2021. We set out in this note a few considerations for market participants on the use of these two documents.