credit - based benchmark, like bbsw will continue to make sense. floating rate notes and corporate loans issued by banks are examples of this. but as i've said before, not all bbsw tenors are as robust as others. [ 9 ] in particular, the 1 - month bbsw is largely a buy - back market. accordingly, it is less liquid than other tenors. so users of 1 - month bbsw should give careful consideration to using alternative benchmarks given the lack of liquidity in this market. it's also worth noting that for some products, approaches adopted widely by market participants offshore will have an important bearing on the reference rates we are likely to end up using. so regardless of the robustness of bbsw, we can expect to see a shift towards referencing risk - free rates in australia for some products if that is the trend adopted offshore. fallbacks are important for all contracts fallbacks are also a key element in australia's multiple - rate approach. fallbacks provide valuable insurance. and if there's one thing that libor has shown us, it's that we shouldn't take existing benchmarks for granted. regardless of the reference rate used in a contract, the inclusion of robust fallbacks is required for prudent risk management. accordingly, it is something that the global central banking and financial supervisory community expects. this is why the reserve bank worked closely with isda as fallback provisions for credit benchmark rates were being developed. our local credit - based benchmark, bbsw, is included in the isda fallbacks and protocol. so adherence to the protocol is not only important for managing libor transition, but as a matter of good practice for your contracts that reference bbsw rates as well. in due course, the reserve bank will also require securities that reference bbsw to include robust fallback provisions in order to be eligible as collateral in our market operations. there is a lot of good work already underway in industry towards developing market conventions in this area – including by the asf. the reserve bank is currently working through feedback from industry on the proposed implementation of a principles - based requirement to take effect in mid 2022. we expect to confirm the implementation details in coming months. thank you for your time today. i look forward to answering questions you may have. endnotes [ * ] i thank andrea brischetto for invaluable assistance in preparing this material. see ice benchmark administration limited ( 2021

), ‘ ice libor feedback statement on consultation on potential cessation ’, statement, 5 march. available at < https : / / www. theice. com / publicdocs / feedback _ statement _ on _ consultation _ on _ potential _ cessation. pdf >. see fca ( financial conduct authority ) ( 2021 ), ‘ announcements on the end of libor ’, press release, 5 march. available at < https : / / www. fca. org. uk / news / press - releases / announcements - end - libor >. there are very limited exceptions to this, including contracts necessary to support or manage risks relating to legacy libor contracts entered into before the end of 2021. for example, see federal reserve board ( 2020 ), ‘ agencies issue statement on libor transition ’, joint press release, 30 november. available at < https : / / www. federalreserve. gov / newsevents / pressreleases / bcreg20201130a. htm >. in ice benchmark administration's statement on 5 march, it stated that it will not be possible to publish the libor settings on a representative basis beyond the nominated cessation dates. the uk financial conduct authority publicly confirmed this finding ( see footnote 2 ), thereby constituting an index cessation event under the isda 2020 ibor fallbacks protocol, triggering the setting of the spreads to be used in the fallback rate calculations. see isda ( international swaps and derivatives association ) ( 2021 ), ‘ isda statement on uk fca libor announcement ’, press release, 5 march. available at < https : / / www. isda. org / 2021 / 03 / 05 / isda - statement - on - uk - fca - libor - announcement / >. see rba ( 2020 ), ‘ regulators urge australian institutions to adhere to the isda ibor fallbacks protocol and supplement ', media release no 2020 - 25, 13 october. available at https : / / www. rba. gov. au / media - releases / 2020 / mr - 2025. html. see fsb ( financial stability board ) ( 2020 ), ‘ global transition roadmap for libor ’, 16 october. available at < https : / / www. fsb. org / 2020 / 10 / global - transition - roadmap - for - libor / >.