IBORs and other Benchmarks

Parties entering into market transactions (such as OTC derivative transactions and securities financing transactions) that use certain indices and interest rates as benchmarks are exposed to the risk that such benchmarks (i) may be subject to methodological or other changes which could affect their value, (ii) may not comply with applicable laws and regulations (such as the European Benchmark Regulation) and/or (iii) may be permanently discontinued.

These risks include, but are not limited to, the possibility that (i) the London Interbank Offered Rate (LIBOR) is phased out after 2021; and (ii) the Euro Overnight Index Average (EONIA) does not comply with the European Benchmark Regulation after January 2020.

The occurrence of any of the aforementioned risks may have adverse consequences which may materially impact the economics of the relevant market transactions.  You should conduct your own independent investigation and analysis of the potential consequences of any relevant risks such as those mentioned above, particularly in light of the ongoing industry initiatives related to the development of alternative reference rates and the update of the relevant market standard documentation.