IBOR Australia

IBOR Australia

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Tom Highnam

Partner

ALLENS

Tom specialises in fund finance, leveraged finance and derivatives.


Tom is recognised as a leading practitioner representing financiers on subscription financing transactions for both domestic and global funds, including Partners Group, Pacific Alliance Group, First State Super, PEP, BGH, IFM, AMP, CHAMP and Next Capital.


In the acquisition finance space, his recent transactions include acting for First State Super on the financing aspects of its acquisition of the Victorian LPI and acting for the banks on Tamar Alliance's acquisition of Nature's Care.


Tom is also known for his expertise in derivatives, acting for the domestic banks and leading investment banks on a range of structured finance transactions involving derivatives and advising a number of ASX 100 companies as end-users.


He is recognised in Chambers Asia Pacific 2015-2019 as a notable practitioner in both Corporate Finance and Acquisition Finance and by Best Lawyers 2019 in Banking and Finance Law, Capital Markets Law and as the leading Lawyer for Derivatives.
 

IBOR Transition to Risk Free Rates

 

Day 1, Tuesday 13 August 2019

08:00

Registration

09:00

Overview of IBOR to risk free rates and benchmark options

  • Context - financial markets affected
  • The wider benchmark reform agenda
  • ARR methodologies / jurisdictions
  • Term structures
  • The challenges of transitioning to ARRs

10:30

Morning Tea

11:00

How to deal with the Transition - Case Study (Australia) 

  • Fate of BBSW / AONIA
  • Transition triggers and target operating model
  • IBOR transition risks
  • Transition planning and programme essentials
  • Programme governance
  • Implementation of the new ISDA fallback language

12:30

Lunch

13:30

How do the operations function adapt? 

  • Different publication times - effect on existing IT systems
  • Will different pricing/margins need to be applied across different currencies - effect on existing IT systems
  • Improving process and documentation

15:00

Afternoon Tea

15:30

Accounting Implications

  • Hedge accounting relationships
  • Fair value hedging 
  • Discounting/ valuations
  • Cashflow hedgiAng 
  • Modification accounting

17:00

End of day one

 

Day 2, Wednesday 14 August 2019

08:00

Registration

09:00

How to deal with the transition

  • Client communications
  • Conduct, reputational and legal risk derived from making judgement based submissions
  • RFR programme set up – future of AONIA
  • Governance 

10:30

Morning break

11:00

Impact on risk management and risk control

  • Overnight RFR's vs Term Rates
  • Will different pricing/margins need to be applied across different currencies 
  • Curve structure changes
  • Basis risk 
  • Pricing models
  • Risk management

12:30

Lunch

13:30

Obligations in the derivatives and cash market

  • Modelling, Hedging
  • Legacy products
  • Fall back provisions
  • Recommenced practical steps

15:30

The technology impacts and operating model challenges

  • Key considerations: Legacy vs new
  • Concurring new and legacy books
  • Migrations: Easier said than done
  • Jurisdictional differences in approach and timetable

17:00

End of training course