ISDA CEO O'Malia on Libor Reform, Brexit, Asia Derivative Markets

The video discusses the ongoing Libor reform, emphasizing the transition to risk-free rates for $370 trillion in contracts. It highlights the importance of education and fallback rates in this transition. The impact of Brexit on the derivatives industry is also covered, with a focus on ensuring a smooth transition. The video further explores Asia's market growth, particularly in China, and the potential for a credit default swaps market there.

What is the main reason for transitioning from Libor to risk-free rates?

• To increase the number of bank surveys

• To base rates on actual transactions

• To reduce the number of contracts

• To simplify the financial markets

What is a key focus in the process of replacing Libor?

• Creating fallback rates

• Developing new bank surveys

• Reducing market consultation

• Increasing the number of contracts

What was the EU's response to the potential impact of Brexit on derivatives?

• Relocating all clearing houses to mainland Europe

• Prohibiting all derivatives trading in London

• Granting a one-year temporary license for London clearing houses

• Granting a permanent license for London clearing houses

What is a significant concern for the derivatives industry in the event of a hard Brexit?

• Increasing the number of bank surveys

• Reducing the number of clearing houses

• Upsetting the balance of counterparties

• Increasing the number of contracts

What is a major focus for developing a strong derivatives market in Asia?

• Increasing the number of bank surveys

• Developing good legal foundations

• Simplifying market regulations

• Reducing the number of contracts

What is the estimated annual infrastructure financing needed in Asia?

• $1.7 billion

• $1.7 trillion

• $370 trillion

• $370 billion

What is a potential benefit of a Western-style CDS market in China?

• Simplifying financial regulations

• Increasing the number of bank surveys

• Balancing risk in an appropriate way

• Reducing the number of contracts