So the global central banking and financial supervisory community has been promoting the adoption of robust fallback provisions as part of the broader program of global benchmark reform. This is why the Reserve Bank worked with ISDA as fallback provisions for credit benchmark rates were being developed.
As the reforms outlined in the act are implemented, the most active firms in bilateral OTC markets likely will become active clearing members of central counterparties. As such, the quality of risk management at these firms importantly affects the ability of the central counterparty to manage its risks effectively and to deliver risk-reducing benefits to the markets.