Japan Financial Services Agency: Suggestion On The Timing To Cease Entering Into New Contracts For Products Referencing Euroyen TIBOR In Response To The Publication Of The Comments On The “Timing To Cease Entering Into New Contracts” For Products Referencing Euroyen TIBOR By JBA TIBOR Administration

On December 22, 2023, JBA TIBOR Administration (“JBATA”), which is a "Specified Financial Benchmark Administrator", published the Comments on the “timing to cease entering into new contracts” for products referencing Euroyen TIBOR. For further details, please refer to the following:

Comments on the “timing to cease entering into new contracts” for products referencing
Euroyen TIBOR (JBA TIBOR Administration) - December 22, 2023

After JBATA published the “Public Consultation on permanent cessation of Euroyen TIBOR and related issues” (“Public Consultation”) (consultation period: August 1 - September 30, 2023), it published the document, Comments on the “timing to cease entering into new contracts” for products referencing Euroyen TIBOR, prior to the publication of the results of the Public Consultation. Although the permanent cessation of Euroyen TIBOR has not been determined as of the publication date of the document, based on the document and other information, JBATA expects market participants to prepare for the potential permanent cessation of Euroyen TIBOR at the end of December 2024.

If the permanent cessation of Euroyen TIBOR is determined to be implemented at the end of December 2024, the Financial Services Agency (FSA) expects the orderly transition away from the benchmark to be realized. In order to support such a smooth transition, based on the majority view of the respondents to the Public Consultation, the FSA suggests that market participants cease entering into new contracts for products referencing Euroyen TIBOR by the end of June 2024 at the latest.*

*It does not preclude derivatives transactions such as those intended for risk management of existing positions. In addition, it does not preclude financial institutions from executing those transactions for customers which would result in increasing Euroyen TIBOR exposure, and does not require financial institutions to confirm their customers’ purposes of trade before and after selling financial instruments or executing transactions.