Read all our Isda AGM coverage here.
Australia’s central bank will require certain debt instruments referencing the local credit-based benchmark to include fallback provisions to be eligible for its repo facility.
The requirement is among the first by a regulator globally to make it compulsory to include fallback language in new contracts. Authorities had so far indicated it would be up to counterparties to include such provisions.
“We will impose as a requirement the securities that will be