.jpg)
Thirteen of the world's biggest banks, including UBS, Credit Suisse, Barclays, Deutsche Bank and BNP Paribas have been accused by Alaska Electrical Pension Fund of conspiring to set the ISDAFIX rate at artificial levels from 2009 to 2012, causing billions of dollars of investor losses.
ISDAFIX is the leading benchmark for annual swap rates for swap transactions worldwide. This screen service provides average mid-market swap rates for four major currencies at selected maturities on a daily basis. ISDAFIX rates are currently based on a midday and, additionally in some markets, end-of-day polling of mid-market rates. International Swaps and Derivatives Association (ISDA)established ISDAFIX in 1998 in co-operation with Reuters (now Thomson Reuters) and Intercapital Brokers (now ICAP plc). At present, ISDAFIX provides rates for euro, British pound, Swiss franc and US dollar. In addition, ISDAFIX provides US dollar swap spreads.
In August 2014 ISDA announced that ICE Benchmark Administration Limited (IBA) had formally assumed the role of ISDAFIX administrator.
IBA was chosen in April after a competitive selection process, which began with a public invitation to tender in February. Following a transition period, IBA formally took on its responsibilities as benchmark administrator and calculation agent for ISDAFIX in US dollar, euro, British pound and Swiss franc from August 1, 2014.
As administrator, IBA will oversee a move from a polled submission model, where contributing banks submit price estimates, to a methodology based on actual transactions and/or executable quotes posted on regulated trading venues.
These changes are aimed at aligning the ISDAFIX benchmark with principles for financial benchmarks, published by the International Organization of Securities Commissions (IOSCO) in July 2013, and subsequently endorsed by the G-20 and by the Financial Stability Board.
