At its September 9, 2019 public meeting, the CFTC Market Risk Advisory Committee approved a "plain English" set of disclosures for new derivatives contracts that reference interbank offered rates ("IBORs"), including the London Interbank Offered Rate.
The set of disclosures is divided into categories based on the related IBOR and whether the market participants using the disclosure have implemented the new fallbacks to the 2006 ISDA Definitions contemplated by the ISDA. The disclosures describe some of the risks associated with the continued use of the applicable IBOR and some of the risks associated with implementing the related fallbacks.
The CFTC notes in its release that the approved disclosures are meant to serve as helpful examples for market participants, and that market participants can use such disclosures as they deem appropriate.
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