Securities and Markets

European Securities and Markets Authority

COVID-19 - ESMA publishes statement on half-yearly financial reports - 20 May 2020

The European Securities and Markets Authority (ESMA) has published a statement addressing the impact of the COVID-19 pandemic on listed issuers’ half-yearly financial reports. The statement also applies to financial statements in other interim periods where IAS 34 is applied.

Among other things, ESMA highlights that issuers’ half-yearly financial reports should:

• provide relevant and reliable information, which may require issuers to make use of the time allowed by national law to publish half-yearly financial reports while not unduly delaying the timing of publication;
• include updated information in their latest annual accounts to inform stakeholders of the impacts of COVID-19, particularly in relation to significant uncertainties and risks, going concern, impairment of non-financial assets and presentation in the statement of profit or loss; and
• contain entity-specific information on the past and expected future impact of COVID-19 on the strategic orientation and targets, operations and performance of issuers, as well as any mitigating actions put in place to address the effects of the pandemic.

ESMA statement on listed issuers’ half-yearly financial reports in light of COVID-19

Press release

International Swaps and Derivatives Association

Pre-cessation fallbacks - ISDA publishes report summarising responses to consultation on implementation proposals - 14 May 2020

The International Securities and Derivatives Association (ISDA) has published a report summarising the responses to its consultation on the implementation of pre-cessation fallbacks for derivatives referencing the London Interbank Offered Rate (LIBOR).

The report indicates that a majority of respondents support including pre-cessation and permanent cessation fallbacks without optionality or flexibility in the amended 2006 ISDA Definitions for LIBOR and in a single protocol for including the updated definitions in legacy trades. As a result, ISDA expects to publish amendments to the 2006 ISDA Definitions to incorporate the fallbacks for new trades in July 2020. In addition, a further protocol will be launched to allow participants to incorporate the revisions into legacy trades if they choose to do so. Both changes are expected to come into effect before the end of the year.

ISDA report summarising responses to its consultation on the implementation of pre-cessation fallbacks for LIBOR derivatives

Press release