Meeting: Date: Location: Attendees: ICE Benchmark Administration Redacted Minutes ISDAFix Oversight Committee Thursday 11th December, 16:00 Shackleton, IBA Offices, Chiswell Street Stephen Pickford (Chair) Deborah Land (secretary) David Clark George Handjinicolaou Finbarr Hutcheson Emma Vick Attendees for IBA: Antonios Gkoulousis Matthew Glenville Andrew Hill Stelios Tselikas Apologies: None Circulation:
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Chairman’s Welcome and Previous Minutes The Chairman introduced himself and asked the Committee to follow suit. The meeting opened with the Chairman stating the importance of the Committee’s role in ensuring the governance structure of ISDAFix especially if it became regulated. IBA shared their expectation of how the Committee will grow and explained that they were in contact with several Companies regarding participation. Being the inaugural meeting there were no minutes to approve. Terms of reference – draft for approval The Chairman gave an overview of the Terms of Reference, which define the role of the Oversight Committee in the determination and definition of ISDAFIX, and the governance standards associated with it. The Committee discussed and approved the Terms of Reference. Overview of IBA – for information An overview of IBA was provided for background and information, all members were previously aware of IBA and had no comments. IBA’s Conflicts of Interest Policy – for information All members of the Committee were aware of IBA’s Conflict of Interest Policy and had no comments. Surveillance overview – presentation IBA talked through the process from client to consumer; covering submitting, calculation and publication of ISDAFix rate. They covered key points of surveillance, IBA aims, tools and processes. They also described the tools that IBA employs, including the ‘Admin Console’ where they can see submissions in real-­‐time. IBA were asked if the submissions were made public when the rate is published. IBA confirmed that was correct. IBA informed the Committee that most of the errors seen so far were due to IT or definition issues. There was minimal impact to the rate on each occasion but when a definition error occurred IBA checked with the bank to ensure that the error had been addressed. An overview was given on the current position with producing a CHF rate. A decision was taken to suspend production of the CHF rate from 12th December. IBA informed the Committee that a press release would be issued and that the remaining CHF submitting banks would be informed of the decision in person. 6. MTF transition update – presentation and methodology IBA talked through the current methodology used by IBA, explaining how close the MTF rate has been to the published rate. This is indicative that if IBA were to move to an MTF tomorrow there wouldn’t be a huge change in the rate. 7. Code of Conduct for Polled Rates – memo and draft code for comment/approval The Committee had an in-­‐depth discussion regarding some banks’ practice of over-­‐riding the prices in their live feeds. IBA were asked if the Committee thought that it was acceptable for a bank to over-­‐ride a live feed if they felt that they are too far from the market rate? A member said that the rate would still come from a controlled environment i.e. from their compliance, so they could see no issue with this. It was considered that the bank’s submission then became one of expert judgement. The Code of Conduct was agreed and IBA informed the Committee that this would be published on the IBA website. 8. Meeting schedule It was suggested that the timings of the ISDAFix Oversight Committee meetings will be in line with transition and go-­‐live schedule then take place every two months or so. 9. AOB None 10. Proposed date and time of next meeting 11:00 – 13:00, 22nd January 2015, IBA Boardroom. 2