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The expected end of LIBOR, that is: End of 2021, is approaching. For different currencies, alternative interest rates, known as risk-free rates, have been set as new standard market rates; SARON replaces z.B. CHF LIBOR. Open derivatives transactions that refer to LIBOR and mature after the end of legacy transactions must be converted to risk-free interest rates. Such a transition can take place, for example. B, by an early renegotiation of the transaction in question or by the agreement of robust case clauses that facilitate the transition as soon as LIBOR is suspended. FINMA recommended these two approaches in its 08/2020 guide on the replacement of LIBOR for derivatives. FinfraG`s reporting obligations ensure that the details of derivative contracts, changes to these contracts and their termination are notified to a central repository registered or granted by the Swiss regulatory authority. Contrary to EU requirements, finfraG follows the US approach and allows for a unilateral report.

Counterparties must agree on the responsibility for the declaration. Banks and large financial institutions will be able to easily facilitate reporting. Smaller establishments, such as small non-financial counterparties. B, will either rely on their larger counterparties to process the reports, or – if they themselves are faced with a smaller institution without such an entity – update their internal systems to meet operational and technical requirements, to ensure compliance with the reporting obligations defined by FinfraG. Reporting obligations do not necessarily require a change in existing agreements. The Swiss regulator FINMA has authorised and recognised the first two central repositories under the Financial Infrastructure Act (FMIA): SIX Trade Repository AG and Regis-TR S.A. This means that the obligation to report derivatives transactions to a central repository is now being phased in and requires, worldwide, that legislators and regulators intend to have as many over-the-counter derivatives transactions as possible through a central counterparty (CCP) perform, and that FinfraG is no exception to this rule. Once market participants know that they are subject to clearing obligations, either by categorization or because of the class of derivatives they act on, they must decide strategically how they organize the clearing body to comply with FinfraG rules.