Supervisors are also enhancing their oversight of banks’ hedge fund exposures. The supervisory guidance issued by the Basle Committee, the OCC, and the Federal Reserve represents an effective, quick, and needed response to an important issue. This guidance effectively reinforces private sector initiatives to enhance counterparty credit risk management processes.
The EU Benchmarks Regulation sets a demanding timeframe for the reform.3 It has set 1 January 2020 as a deadline for benchmarks designated as critical to comply with its provisions. These provisions are also relevant for contracts based on the EONIA benchmark.