Benchmark Transition Event definition: Copy, customize, and use instantly
Introduction
The term "Benchmark Transition Event" refers to a situation in which a financial benchmark, such as an interest rate or index, undergoes a material change or is discontinued. This event is often triggered by regulatory changes, market shifts, or the replacement of a benchmark. It is important for parties in financial contracts to define this term to address how such transitions affect their agreements.
Below are various examples of how "Benchmark Transition Event" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Benchmark Transition Event" as a change in the benchmark's methodology
This definition ties "Benchmark Transition Event" to a change in the methodology used to calculate a benchmark.
"Benchmark Transition Event" means an event where the methodology or formula used to calculate a benchmark is materially altered, leading to significant changes in the benchmark’s value.
Definition of "Benchmark Transition Event" as the discontinuation of a benchmark
This definition connects "Benchmark Transition Event" to the cessation or discontinuation of a benchmark.
"Benchmark Transition Event" refers to the discontinuation, permanent cessation, or unavailability of a financial benchmark that impacts the terms of a contract referencing such benchmark.
Definition of "Benchmark Transition Event" as a shift in the benchmark's reference
This definition links "Benchmark Transition Event" to a shift in the reference rate or underlying asset of the benchmark.
"Benchmark Transition Event" means an event in which a benchmark's reference rate or underlying asset is modified or replaced with a new reference rate or asset.
Definition of "Benchmark Transition Event" as regulatory action
This definition applies "Benchmark Transition Event" to regulatory actions influencing a benchmark.
"Benchmark Transition Event" refers to any regulatory action, including government intervention or mandates, that leads to a change, replacement, or cessation of a benchmark.
Definition of "Benchmark Transition Event" as a market disruption
This definition ties "Benchmark Transition Event" to significant disruptions in the market related to a benchmark.
"Benchmark Transition Event" means an event where a benchmark becomes unreliable or unavailable due to significant market disruptions, including liquidity shortages or widespread trading halts.
Definition of "Benchmark Transition Event" as replacement by an alternative benchmark
This definition connects "Benchmark Transition Event" to the replacement of a benchmark by an alternative.
"Benchmark Transition Event" refers to the event in which a financial benchmark is replaced by a new benchmark or rate, which serves as a substitute for the original benchmark in contracts.
Definition of "Benchmark Transition Event" as the inability to determine the benchmark
This definition links "Benchmark Transition Event" to situations where a benchmark can no longer be determined.
"Benchmark Transition Event" means the event where a benchmark becomes impossible to calculate or determine, whether due to the cessation of its publication or other factors.
Definition of "Benchmark Transition Event" as a change in the benchmark's sponsor
This definition ties "Benchmark Transition Event" to a change in the organization that sponsors or administers the benchmark.
"Benchmark Transition Event" refers to a change in the entity or organization responsible for administering or publishing a benchmark, which may affect its reliability or calculation.
Definition of "Benchmark Transition Event" as a failure to publish the benchmark
This definition connects "Benchmark Transition Event" to the failure of an entity to publish the benchmark.
"Benchmark Transition Event" means an event in which a benchmark is no longer published or distributed, rendering it unavailable for use in financial contracts.
Definition of "Benchmark Transition Event" as a rating agency’s actions
This definition applies "Benchmark Transition Event" to actions by rating agencies impacting a benchmark.
"Benchmark Transition Event" refers to actions taken by a rating agency, such as downgrading or withdrawing support for a benchmark, which may lead to its transition or discontinuation.
Definition of "Benchmark Transition Event" as an international transition
This definition links "Benchmark Transition Event" to global shifts in the benchmark landscape.
"Benchmark Transition Event" means a global shift or transition in benchmark standards, driven by international regulatory changes or market-wide shifts.
Definition of "Benchmark Transition Event" as an event of default
This definition ties "Benchmark Transition Event" to default events in a financial agreement.
"Benchmark Transition Event" refers to an event of default triggered by the failure of a benchmark to meet certain contractual requirements, such as continued publication or reliability.
Definition of "Benchmark Transition Event" as a transition to a synthetic benchmark
This definition connects "Benchmark Transition Event" to the introduction of a synthetic benchmark.
"Benchmark Transition Event" refers to a situation where a benchmark is replaced by a synthetic benchmark, which is constructed using alternative data sources or methodologies.
Definition of "Benchmark Transition Event" as an impact of LIBOR transition
This definition applies "Benchmark Transition Event" to the LIBOR transition process.
"Benchmark Transition Event" means an event where LIBOR (London Interbank Offered Rate) is discontinued or replaced by an alternative benchmark, such as SOFR (Secured Overnight Financing Rate).
Definition of "Benchmark Transition Event" as a decline in benchmark usage
This definition ties "Benchmark Transition Event" to the decreasing usage of a benchmark in contracts.
"Benchmark Transition Event" refers to a significant decrease in the usage or reliance on a particular benchmark due to market trends or shifts towards alternative benchmarks.
Definition of "Benchmark Transition Event" as contractual provision for replacement
This definition connects "Benchmark Transition Event" to a contractually defined replacement provision.
"Benchmark Transition Event" means the activation of a contractual provision that specifies how to replace a benchmark with an alternative in the event that the original benchmark is no longer available.
Definition of "Benchmark Transition Event" as a change in benchmark rate structure
This definition links "Benchmark Transition Event" to structural changes in a benchmark’s rate or formula.
"Benchmark Transition Event" refers to an event where the rate structure or formula used to calculate a benchmark is materially altered, affecting its relevance or use in contracts.
Definition of "Benchmark Transition Event" as a shift in market practices
This definition applies "Benchmark Transition Event" to shifts in market practices related to benchmarks.
"Benchmark Transition Event" refers to a significant change in market practices or conventions that alters the use or determination of a financial benchmark.
Definition of "Benchmark Transition Event" as market consensus
This definition ties "Benchmark Transition Event" to a consensus in the financial markets regarding a benchmark's transition.
"Benchmark Transition Event" means an event where a market consensus emerges to transition from one benchmark to another, typically due to perceived reliability or regulatory concerns.
Definition of "Benchmark Transition Event" as a forced transition by regulators
This definition connects "Benchmark Transition Event" to forced transitions by regulatory authorities.
"Benchmark Transition Event" refers to a situation in which regulators mandate the transition of a benchmark, often due to market instability or systemic risks associated with the current benchmark.
Definition of "Benchmark Transition Event" as a disruption in the underlying market
This definition links "Benchmark Transition Event" to a disruption in the underlying market that affects the benchmark.
"Benchmark Transition Event" means an event where a disruption in the underlying market, such as a liquidity crisis, causes the benchmark to become unreliable or obsolete.
Definition of "Benchmark Transition Event" as discontinuation by the administrator
This definition ties "Benchmark Transition Event" to a benchmark being discontinued by its administrator.
"Benchmark Transition Event" refers to the discontinuation of a benchmark by its administrator, making it unavailable for use in financial contracts or transactions.
Definition of "Benchmark Transition Event" as redefinition by the benchmark administrator
This definition connects "Benchmark Transition Event" to the redefinition of a benchmark by its administrator.
"Benchmark Transition Event" means an event where the administrator of a benchmark redefines its terms or methodologies, leading to a material change in how it is used or calculated.
Definition of "Benchmark Transition Event" as a legal or tax change
This definition applies "Benchmark Transition Event" to changes in law or tax that impact the benchmark.
"Benchmark Transition Event" refers to a legal or tax change that impacts the continued use or calculation of a benchmark, requiring its replacement or modification.
Definition of "Benchmark Transition Event" as a transition to a market standard
This definition ties "Benchmark Transition Event" to the transition from an existing benchmark to a new market standard.
"Benchmark Transition Event" means an event where an existing benchmark is replaced by a new market standard, driven by market consensus or regulatory action.
Definition of "Benchmark Transition Event" as legacy contract adjustment
This definition connects "Benchmark Transition Event" to adjustments needed for legacy contracts.
"Benchmark Transition Event" refers to an event where legacy contracts, previously referencing a discontinued or altered benchmark, require adjustments to incorporate a new or alternative benchmark.
Definition of "Benchmark Transition Event" as impact of economic crises
This definition links "Benchmark Transition Event" to the impact of economic crises on benchmarks.
"Benchmark Transition Event" means an event where an economic crisis or shock leads to the abandonment or modification of a financial benchmark.
Definition of "Benchmark Transition Event" as a benchmark’s failure to reflect market conditions
This definition ties "Benchmark Transition Event" to the failure of a benchmark to accurately reflect market conditions.
"Benchmark Transition Event" refers to a situation where a benchmark fails to reflect the true state of the underlying market, leading to its replacement or modification.
Definition of "Benchmark Transition Event" as early termination of contracts
This definition applies "Benchmark Transition Event" to early termination clauses triggered by benchmark issues.
"Benchmark Transition Event" refers to the early termination of a contract or agreement due to the unavailability or modification of a benchmark referenced in that contract.
Definition of "Benchmark Transition Event" as a transition process defined in agreements
This definition connects "Benchmark Transition Event" to a predefined transition process in financial agreements.
"Benchmark Transition Event" means the specific process or procedure defined within a contract that governs the transition to an alternative benchmark upon the occurrence of certain events.
Definition of "Benchmark Transition Event" as cessation due to technological failure
This definition links "Benchmark Transition Event" to technological failures leading to a benchmark's cessation.
"Benchmark Transition Event" refers to the cessation or modification of a benchmark due to a technological failure or disruption, preventing its proper calculation or dissemination.
Definition of "Benchmark Transition Event" as volatility in underlying instruments
This definition ties "Benchmark Transition Event" to excessive volatility in the underlying instruments of a benchmark.
"Benchmark Transition Event" refers to a situation where extreme volatility in the instruments underlying a benchmark causes its value to become unreliable, prompting a shift to a new benchmark.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.