Major structural changes in global financial markets regarding interest rate benchmarks are now underway. Central banks and regulators in a number of key jurisdictions are committed to a transition away from the various Interbank Offered Rates (IBORs) to alternative rates expected to be more robust and less vulnerable to manipulation. The London Interbank Offered Rate (LIBOR) is the most commonly used IBOR.
The IBORs represent an average of the rates at which Panel Banks believe that they could borrow money in various currencies in the interbank market and reflect both the interest rate environment and the expected credit and liquidity risks faced when lending on the interbank market. Today, the IBORs are widely used as benchmark rates in financial transactions, including in the derivatives, bonds, loans, and structured markets but the IBORS are widely anticipated to be discontinued or become less reliable as regulatory support for the rates is withdrawn at the end of 2021.
A variety of within Risk Free Rates (RFRs) have been proposed by regulatory authorities and industry working groups as alternative benchmark rates to replace the IBORs. Regulators and industry groups are encouraging and supporting the transition to these alternative rates as further described below.
Should you have any questions, please reach out: firstname.lastname@example.org or your usual sales representative or relationship manager.
Pursuant to Article 24.4 of the Directive 2014/65/EU (MiFID II) and to Article 50 of the Delegated Regulation 2017/565, Natixis (hereinafter collectively referred to as “we” or “our”) is required to inform its clients (hereinafter “you”) of the costs and charges of both the services we offer and the products traded with us when we deal as principal.
For the purposes of compliance with the said MiFID II requirements, the document below provides you with information about the costs and charges associated with our products and services. Please note that this information is provided for regulatory purposes only and is not either a recommendation to buy or sell a specific product, an offer to buy or sell a specific product or a marketing material.
In compliance with Market Abuse Regulation that came into force on 3 July 2016, please find relevant information regarding investment recommendations.
This document is published outside Financial Research Department. However, as staff member of Natixis, the producer of the document may be considered as author of an investment recommendation.
Policy for managing conflicts of interest:
Information about potential conflicts of interest within Natixis/Groupe BCPE: