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Philab set to launch digital genetic services in PHL

LISTED Philab Holdings Corp. is making a push towards genetics-based healthcare as it changes its name to DNA Holdings Corp. and teams up with Hong Kong’s Prenetics Ltd. to launch a digital genetic services in the Philippines

In a disclosure to the stock exchange Tuesday, the company said it wants a name that is “reflective of our company’s belief that genetics is the next frontier in medicine and in our mission to provide accessible, accurate and affordable healthcare to all Filipinos under the country’s Universal Health Care.”

This follows its disclosure late Monday that it has earned the exclusive rights to market, sell and provide certain genetics testing services of Prenetics in the country after signing a memorandum of agreement last week.

In a statement Tuesday, DNA Holdings said it is targeting to launch Prenetics’ CircleDNA brand within the first quarter next year and reach 100,000 Filipinos in the next three years.

“This timely partnership will bring affordable, accessible and accurate world-class DNA testing to the Philippines… They will lower the total cost of healthcare not just for the patient but for the nation,” DNA Holdings President and Chief Executive Officer Robert W. van Zwieten said in the statement, alluding to the recently passed Universal Heath Care Law.

He said through DNA tests, people can “prevent hereditary disease through early prevention.”

“We hope to eventually integrate genetic diagnostics into PhilHealth (Philippine Health Insurance Corp.),” Mr. van Zwieten added.

CircleDNA is a product of Prenetics that claims 99.9% analytical accuracy. Among its services are optimizing health through diet, fitness and lifestyle; family planning; evaluating health risks and a comprehensive DNA test to detect risks.

Aside from the Philippines and its home base Hong Kong, CircleDNA is present in other countries including Singapore, Malaysia, Thailand, United Kingdom, South Africa and India. It was founded in 2014 and joins Prenetics’ other genomics business DNAFit.

“We are extremely excited to partner with DNA Holdings in bringing innovative and proven DNA technologies to the Philippine market,” Prenetics Chief Executive Officer Danny Yeung was quoted in the statement as saying.

“It has always been our mission to empower everyone to be in control of their own health, and with DNA Holdings’ track record of success in the Philippines, we believe we can be market leaders in a very short amount of time,” he added.

DNA Holdings booked an attributable net loss of P108.45 million in the nine months to September, slightly slimmer from last year’s P109.72 million. — Denise A. Valdez

Globe taps DBP for P5-B term loan as it ramps up capital spending

GLOBE TELECOM, Inc. said it signed a P5-billion term loan with the state-run Development Bank of the Philippines (DBP), as it is set to continue ramping up capital spending to improve data infrastructure in the country.

“The loan shall be used to finance the company’s capital expenditures and general corporate requirements, and refinancing of maturing obligations,” the listed telco giant told the stock exchange on Tuesday.

Globe said its capital expenditures for 2019 is set to reach P63 billion, “largely for data-related capital expenditures (capex) that will enhance network data capacities and capabilities.”

As of end-September, the telco said its total cash capital expenditures stood at P32 billion, 2% lower than last year’s level of P32.5 billion. Around 75% of nine-month capex was used for data networks.

“To ensure these network improvements are sustained, the company continues to reinvest in the network and is currently on track to reach capital expenditure commitments of $1.2 billion by the end of 2019. This is consistent with the guidance provided earlier in the year; however, given the nature of these commitments, cash capital expenditures is expected to end the year at around $900 million, as some payment milestones for the commitments are expected to spill over to the following year,” Globe said in its third quarter financial report.

From January to September this year, Globe noted the consumer shift to digital has pushed mobile data traffic to 1,200 petabytes, exceeding the full-year consumption in 2018. This was driven by “strong growth in smartphone subscriptions and demand for data-intensive applications like video, online games and music apps.”

Globe reported that data currently accounts for 70% of its service revenues, with 47% from mobile data, 14% from home broadband and 9% from corporate data.

Mobile data generated P52.2 billion in nine-month revenues, up 44% from a year ago.

Globe Telecom President and Chief Executive Officer Ernest L. Cu has said that the company is gearing up for the roll of its “At Home Air Fiber 5G (fifth-generation) service.”

Fitch Ratings earlier said that the country’s telecommunications sector is expected to spend more than it can generate internally over the next 18 months as telco firms turn more to debt to fund their future capex.

Fitch also said that capex for 5G technology over the next 18 months will likely be limited due to “lack of applications and the absence of a robust ecosystem of customer devices.” — A.L.Balinbin

Alice Reyes on 50 years — and counting — of Ballet Philippines

TRAVELING AROUND the world and representing the Philippines as a diplomat was the plan. However, fate decided that Alice Reyes would spend her professional life dedicated to the art of movement. “I was going to be in foreign service,” the 2014 National Artist for Dance told BusinessWorld in an interview in November. After all, she had a Bachelor of Arts degree in History and Foreign Services from Maryknoll College and completed post-graduate studies in Ateneo De Manila University.

The arts, however, had always been part of her life. “I come from a musical family,” she explained.

Her mother, Adoracion Garcia-Reyes, was a coloratura soprano and voice teacher, while her father, Ricardo Reyes. He was known as “Mr. Philippine Folk Dancer.” Her younger sisters, Denisa and Edna Vida, are also dancer-choreographers, while Cecille is a pianist.

“I was dancing all the time with my father,” Ms. Reyes said. At a young age, she and father joined the Bayanihan Philippine Dance Company (now the Bayanihan Philippine National Folk Dance Company). “I was exposed to the theater on Broadway, in London, and Paris.”

It was after completing her post-graduate studies in international relations that she deepened her education in dance at a workshop at the Center of Dance in Colorado Springs.

“I was very fortunate to study with [American choreographer] Hanya Holm,” she said. “And that was the opening to my realization that I should probably just accept the fact that my life is going to be in dance.”

Instead of pursuing a career as a diplomat, Ms. Reyes dedicated her life to rehearsing and working with choreographers, performing classical ballet and Filipino dances.

In 1969, Ms. Reyes, with the support of Eddie Elejar, founded the professional classical and contemporary dance company Ballet Philippines (BP) where she served as artistic director for 20 years from 1969 to 1989. BP was also the first resident company of the Cultural Center of the Philippines (CCP).

THE CREATIVE PROJECT
On Nov. 27, the newly opened CCP Black Box Theater was dim and quiet after Ms. Reyes had finished having her picture taken signing copies of her new book.

Edited by Elizabeth V. Reyes, and designed by Dopy Doplon, the cover of the coffeetable book — titled Alice Reyes & Ballet Philippines: A 50-Year Legacy in Dance — shows a black and white photograph from a scene in one of the company’s early shows, Seasons of Light. BusinessWorld sat with the National Artist at the front row of the theater, while the guests had cocktails at the lobby after the program.

“When I became National Artist, NCCA (National Commission for Culture and the Arts) has this program where they give [you] funds for a creative work,” she said. She decided to work on a book in 2017, the same year she returned to Ballet Philippines as artistic director again.

According to Ms. Reyes, since she “was not, at that time, in a position to do a new choreography,” she took inspiration from Nic Tiongson’s coffeetable book about National Artist for Theater and Design Salvador Bernal.

Published under ABS-CBN Books, Ms. Reyes’ book is divided into two sections — Legacy and Repertoire.

The “Legacy” section features seven essays about Ms. Reyes’ personal history, the early years of the dance company, and the company’s trajectory for dance in the country, young choreographers, and dance education.

The essays are written by Beatrice Homann, Nestor Jardin, Elizabeth V. Reyes, Doreen G. Yu, Edna Vida, Richard Upton, and Gina Katigbak-Garcia.

The “Repertoire” section features 45 of BP’s best dance works over the last 50 years. Two-hundred-and-fifty black and white photos were chosen from over 2,500 photos and digital files from the BP dance archives. The photos are taken by renowned dance photographers including Rudy Vidad, Jaime Zobel, Victor Ursabia, and Jojo Mamangun.

“[The book] is basically the story of how important it is for Filipinos to stay and work here, create, perform, develop things, because we are such a talented group of people,” Ms. Reyes said. “We were very fortunate to be able to collaborate. And with that, we, through all the 50 years, have developed pieces, works, dances, that speak of the Filipino soul, and Filipino stories.

“It also shows the range of what we can do as artists,” she added, citing classical works by Bach and Tchaikovsky. “[It shows that] we can do all these styles and that dance can be a career,” she added.

Since its founding, Ballet Philippines has staged over 500 choreographic works such as Amada (1969), Tales of the Manuvu (1977), and Rama Hari (1980). The dance company has also performed internationally in countries such as Canada, the USA, Australia, the United Kingdom, Japan, China, Greece, Germany, Portugal, and Switzerland.

TAKING IT FURTHER
Since her comeback as artistic director, Ms. Reyes has stepped away from creating new choreography to give way to younger choreographers.

“Instead of making new works, I encourage the younger people to choreograph, and to make their statements, to make their contributions to the world of dance,” she said.

BP’s upcoming projects include a commissioned work choreographed by award-winning, Hong Kong-based Filipino choreographer and BP alumni Carlo Pacis in celebration of the 500th anniversary of the world’s first circumnavigation, as well as a US tour in October 2020. “We’re continuing to make new dances from the younger choreographers, and planning the 52nd [season]. And so, it goes on,” she said.

Alice Reyes & Ballet Philippines: A 50-Year Legacy in Dance will be available soon in leading bookstores. For updates, follow @abscbnpr on Facebook, Twitter, and Instagram or visit www.abs-cbn.com/newsroom. — Michelle Anne P. Soliman

Antique airport to be completed by Q3

INFRASTRUCTURE firm Verzontal Infrastructure Corp. (VIC) is hoping to complete the P283-million Antique Airport Development Project by August next year.

In a statement, VIC said it targets to complete the project, which is seen to become one of the major gateways of Bicol region, “by the third quarter” of next year.

The project was awarded to VIC in December last year. VIC said the airport will feature ”green technology” such as louver type window panels and a green roof.

As part of the contract, VIC is also improving the passenger terminal building, landside and airside facilities, and strip grade correction.

“The province sees an increase in capacity of the airport passenger terminal, as it expands to accommodate 86 passenger seats and a consistent three times a week flight schedules,” it said.

Antique Rep. Loren B. Legarda has requested to expedite the implementation of the project and include the “installation of solar panels, a vertical garden, a rain-catching system, and non-corrosive materials for the new terminal,” according to the VIC.

VIC Chairman Dennis G. Macandog said he is confident that the project would be completed by “August 2020” even with the revision of the plans. — Arjay L. Balinbin

Five Manila churches to visit for Simbang Gabi

WHILE it is a treat to sleep in these cool December mornings, many Filipinos will wake up early to attend the 4 a.m. Simbang Gabi.

Simbang Gabi is a Filipino Christmas tradition of very early morning masses which starts on the 16th of December and ends on the 24th, Christmas Eve. Many believe that if they attend all nine of the dawn masses, their prayers will be granted. Others go to the churches to bond with their family and friends and, after hearing the mass, enjoy freshly cooked bibingka or puto bumbong (steamed rice snacks) which are often sold near the entrance of the church.

For those living in or visiting Manila during the holiday season, there is an abundance of churches that they can visit for Simbang Gabi. IkotMNL — a tourism campaign launched by LRT-1 operator Light Rail Manila Corporation — has a list of five recommended churches to visit this season. They are: Baclaran Church in Pasay City; Malate Church, San Sebastian Church, San Agustin Church, and Binondo Church, all in Manila.

All five churches are easily accessible by the LRT 1 — but unfortunately, the trains start running from the Baclaran and Roosevelt terminals at 4:30 a.m., just before the dawn masses end. If a 4 a.m. mass is much too early, you may still want to visit the churches as they have historical, religious, and architectural significance.

Download the ikotMNL app to check the LRT-1 train schedule, crowd situation, advisories, and more. It is available on the App Store or Google Play.

About 10 local banks received funds from Westpac

FUNDS from Westpac Banking Corp. were channeled through a local lender. — REUTERS

ABOUT 10 LOCAL commercial banks were recipients of funds from scandal-hit Westpac Banking Corp. channeled through the Bank of the Philippine Islands (BPI), the local partner of the Australian bank’s remittance arm, a senior Bangko Sentral ng Pilipinas (BSP) official said.

BSP Deputy Governor Chuchi G. Fonacier said BPI has already submitted findings from their initial report which showed that funds involved were of small value and are lower than those required to be flagged and looked into under the country’s anti-money laundering regulations.

She also noted that BPI was only the entry point for the involved funds, which were also channeled to other local banks.

“What makes this different is that [they’re] small transactions. So hindi siya (they are not) required to be reported to AMLC (Anti-Money Laundering Council). It’s very retail,” Ms. Fonacier told reporters on the sidelines of the BSP’s launch of the P20 coins and the enhanced P5 coins.

Ms. Fonacier said they will go through their own review to determine their regulatory action depending on the situation.

“We’re doing a review and then if there’s a need for us to go on-site, then we will go on site [to see] whether banks are complying with the anti-money laundering regulations,” she said.

Under the Anti-Money Laundering Act (AMLA), covered cash transactions are those exceeding P500,000 in cash or in other equivalent monetary instrument.

Asked whether they will look into lowering the threshold for transactions covered by the AMLC, Ms. Fonacier said: “It’s difficult to say at this point kasi (because) this one, we still need to see what exactly happened. And that’s where siguro (maybe) we’ll be anchoring our recommendations later.”

She also said the probe from the BSP’s end may continue until January given that the holiday season is approaching.

“Andoon pa lang naman sa tinitignan (We’re still looking at) whether there was really a some kind of a behavior or pattern doon (in the) sa transaction. That’s the one we are still looking at and evaluating,” she said.

BPI last week said they have already suspended their partnership with Westpac’s LitePay facility.

This was after news broke out regarding the dirty money scandal alleging Westpac to have breached money-laundering laws by more than 23 million times, of which a big chunk were transactions of online purchases or received as pensions from foreign countries. — L.W.T. Noble

China’s CCCC, Macroasia win $10-B Sangley airport project

MANILA — China Communications Construction Co. Ltd. (CCCC) and its local partner have won an auction for a $10 billion airport on the outskirts of Manila, the latest move by Chinese state firms to gain a foothold in the Philippines.

CCCC joined airline service company Macroasia Corporation in a consortium with the Cavite provincial government to carry out the Sangley Point International Airport project, Jesse Grepo, legal officer of the selection committee, told reporters.

The $10 billion project, which involves land reclamation and expansion of an existing small airport, is part of the government’s major infrastructure overhaul plan that government has been criticized for stalling on.

It is one of two proposed multi-billion dollar airport projects that aim to decongest the country’s main gateway in Manila, which has been rated as one of the world’s worst airports.

Under President Rodrigo Duterte, the Philippines has pursued warmer ties with rival China, setting aside a territorial spat in exchange for billions of pledged loans, investment and aid, most of which has yet to materialize.

Chinese state firms have won contracts this past year to enter telecommunications, energy and construction sectors. — Reuters

Language of tsinelas art

THE COLORFUL canvases hanging in the Avellana Gallery illustrate positive words. In the aptly named exhibit Kumpas ng Kamay, the paintings feature hands spelling out words in Philippine Sign Language — and reading the gestures is not a problem a series of smaller paintings hung along the three walls serve as a guide to the English alphabet.

One might assume that the realistic illustrations of human hands were done in oil or acrylic paint, but actually they are made from recycled rubber.

Bataan native Alger Guevarra moved to La Union as an adult where he developed an enthusiasm for surfing. During Mr. Guevarra’s frequent surfing adventures, he noticed the increasing amount of plastic and trash littering the shoreline. In 2015, he came up with the idea of reusing some of the trash, creating a new painting medium of tsinelas (slippers) art.

“The materials are recycled. They are slippers left along the shores of the beach and some are old slippers donated by my friends,” he told BusinessWorld at the exhibition opening on Dec. 7, adding that some of the materials are also the rubber mats of surfboards.

In the early days of his practice with the medium, Mr. Guevarra would cut up the rubber slippers manually, then he discovered a rubber grinder which simplified the process.

The old slippers and mats are ground down into a very fine powder, Mr. Guevarra explained. It is then filtered then mixed with a liquid emulsifier before it is brushed onto the canvas. The vivid colors of the slippers dry like paint.

He was inspired, he said, by the old masters who would grind their own pigments in the days before commercial paints.

Humanap [ako] ng identity na walang katulad (I was looking for a unique identity),” Mr. Guevarra said on finding a niche medium as an artist.

The paintings in the exhibit spell out words such as “Joy,” Love,” and “Hope.”

“This way, my stories can be expressed in a simple manner. Although sign language is mainly for the deaf and mute, but in ancient times, sign language was used as a primary means of communication,” Mr. Guevara said of the subject, in the curator’s note.

Lahat tayo pwedeng maka-relate (We can all relate),” he said.

Mr. Guevarra is a self-taught painter who began a career as a visual artist in 2008 and facilitated art workshops for children through the Bantay Bata program. He has received honorable mentions and awards at the Recycle Competition by Ripley’s Believe It or Not in 2015 and in the Robinsons Land National Art Competition in 2018.

Kumpas ng Kamay is on view until Jan. 31, 2020, at the Avellana Art Gallery located at 2680 F.B. Harrison St., Pasay City. The gallery is open Mondays to Saturdays from 10 a.m. to 6 p.m. — Michelle Anne P. Soliman

Bank of England tweaks capital rules to give banks £500-B loan war chest

LONDON — The Bank of England (BoE) said on Monday it planned to adjust the rules on how much capital British banks must hold, to allow them to keep lending in an economic crisis.

The BoE said its plans would leave the average amount of capital that lenders need to hold broadly unchanged, but would allow it to vary more during the course of an economic cycle.

“These changes improve the responsiveness of capital requirements to economic conditions by shifting the balance … towards buffers that can be drawn down as needed,” BoE Governor Mark Carney told a news conference.

Major British lenders currently hold so-called Tier 1 capital equivalent to just under 14% of risk-weighted assets on average.

The BoE designates 1% of risk-weighted assets as a “counter-cyclical capital buffer” (CCyB) during normal economic times, which can be used to support lending in a downturn.

On Monday the BoE said it would double this buffer to 2%, to take effect by the end of 2020, and then lower other capital requirements by a similar amount.

This would allow major British lenders to absorb up to 23 billion pounds ($29.5 billion) of losses in a downturn without restricting lending, supporting up to 500 billion pounds of loans to British homes and businesses — the equivalent of five years’ borrowing.

Reuters reported last week that Britain’s mid-tier banks had asked the BoE to ease rules they say make it difficult for them to compete with the likes of HSBC, Barclays, RBS and Lloyds on an equal footing.

The BoE said on Monday that when it consults on the detail of the CCyB changes, it would try to ensure they did not lead to any net increase in smaller banks’ capital requirements.

For larger banks, the BoE said the changes would increase Tier 1 capital requirements by about 0.35 percentage points to just over 14%.

STRESS TESTS PASSED
Alongside this, the BoE said all of Britain’s seven main lenders passed an annual test of their ability to withstand financial and economic shocks for the second year running.

The BoE tested HSBC, Barclays, Lloyds Banking Group, Royal Bank of Scotland, Standard Chartered, Santander UK, and Nationwide Building Society for their ability to withstand financial market stresses.

The BoE said no lender failed to meet a firm-specific hurdle for the minimum amount of capital at the end of the test, in a repeat of last year’s result on a test that was similar in toughness.

“UK banks are well above capital required hurdle rates and as a result, capital distributions through dividends and stock buybacks should increase,” said Fernando de la Mora, managing director at business consultants Alvarez & Marsal.

All the banks in the stress tests said they would not need to find fresh capital as a result of the tests.

The BoE said Barclays and Lloyds would need to convert some of their AT1 capital into equity during a stress scenario, if new accounting rules that fully take effect in 2023 were applied.

The BoE had already said lenders held enough capital to cope with the harshest form of Brexit, though a cliff-edge departure that would severely damage the economy now looks off the table for Jan. 31.

Britain’s newly reelected government has a comfortable majority to push through a divorce settlement that will see Britain leave the bloc at the end of next month and enter an 11-month transition period that lasts until the end of 2020. — Reuters

Subanen ritual now in UNESCO Intangible Cultural Heritage list

BUKLOG, the thanksgiving ritual system of the Subanen, an indigenous group in Zamboanga, is now inscribed in the United Nations Educational, Scientific, and Cultural Organization (UNESCO) List of Intangible Cultural Heritage (ICH).

During the 14th Intergovernmental Committee for the Safeguarding of the Intangible Cultural Heritage Meeting held from Dec. 9 to 14, the Buklog was formally inscribed along with the rituals and practices associated with the Kit Mikayi shrine of Kenya; the Spring rite of Jurauski Karahod of Belarus; the Seperu folk dance and associated practices of Botswana; and the Sega tambour Chagos of Mauritius.

Buklog is conducted “to appease and express gratitude to the spirits for reasons such as bountiful harvest, recovery from sickness or calamity, or acknowledgement of a new leader,” according to the National Commission on Culture and the Arts (NCCA) website.

The ritual is planned by the head of a host family or a village chief called timuay. It is performed to ensure harmony among family, community members, and the spiritual worlds.

The Philippines’ first nomination since 2015, Buklog is also the first to be inscribed on the List of ICH as “In Need of Urgent Safeguarding.” The ICH is made up of elements that “require urgent measures to keep them alive,” according to UNESCO. Being inscribed to the list helps “to mobilize international cooperation and assistance for stakeholders to undertake appropriate safeguarding measures.”

According to the NCCA, the organization safeguards the tradition “through a Subanen School of Living Tradition, a community-based, non-formal center of learning which teaches traditional knowledge and skills to the Subanen youth.”

The Darangen epic of the Maranao people of Lanao Lake, the Hudhud chants and the Punnuk tugging ritual of the Ifugao were previously added to the UNESCO list.

The Intergovernmental Committee for the Safeguarding of Intangible Cultural Heritage meets annually to provide guidance and recommendations on measures for the safeguarding of the ICH. — MAPS

Cebu Pacific becomes IATA member

CEBU PACIFIC on Tuesday said it has formally joined the International Air Transportation Association (IATA), a trade association for the global airline industry.

“We are pleased to join IATA as we can gain access to expertise and learnings on best practices and innovations among global airlines, as well as help formulate policies on critical aviation issues. Moreover, we will also be able to share our own operational experience and contribute to further developing the airline industry as a whole,” Lance Y. Gokongwei, President and CEO of Cebu Pacific, said in a statement.

The budget carrier said it is the largest IATA member among Philippine carriers, as it accounts for 44% of the total domestic passenger volume and 46% of total domestic cargo volume, citing data from the Civil Aeronautics Board.

IATA has more than 290 member-airlines from 117 countries, representing 82% of global air traffic.

Conrad Clifford, IATA Vice-President for Asia Pacific, said it is looking to encourage more low-cost carriers like Cebu Pacific to join the organization.

“We warmly welcome Cebu Pacific, Asia’s oldest low-cost carrier, to the IATA family. Today about 20% of our members globally are low-cost carriers and we encourage more to join. We look forward to working together with the Cebu Pacific team to help shape industry standards, best practices and policies that ensure the safe, efficient and sustainable growth of aviation in the Philippines and Asia. Together with our 290+ member airlines, we make aviation the business of freedom,” Mr. Clifford said.

Cebu Pacific said it has fully complied with the IATA Operational Safety Audit (IOSA). There are 437 carriers worldwide that has complied with the evaluation system that assesses the operational management and control systems of an airline.

The budget carrier grew its capacity by 23% as of end-September, reaching 19 million seats. It flew nearly 16 million passengers on 121 domestic and international routes.

Cebu Air, Inc., the listed operator of Cebu Pacific, said its nine-month profit surged 142% to P6.75 billion, as it added flights and raised average fares.

Asian financial firms face ‘benchmark-aggedon’ as tough EU rules take effect

HONG KONG — Banks and asset managers that use Asian benchmarks like the Hang Seng or Nikkei indices face a “perfect storm,” with two major regulatory changes slated to take effect the same day, a financial industry group said on Tuesday.

Financial contracts worth billions of dollars are based on the performance of certain benchmarks, while investment funds often track or hope to beat a benchmark’s performance.

However, global authorities, particularly those in Europe, are now seeking to regulate benchmarks more tightly.

Those measures include replacing the London Interbank Offered Rate (Libor) by the end of 2021 after the world’s largest investment banks paid millions in fines to settle accusations that they had rigged that index.

Organizations that compile and publish market indexes outside the European Union (EU) were in February given an extension to the end of 2021 to comply with the EU’s benchmark regulation (BMR).

However, a survey by the Asia Securities Industry and Financial Markets Association (ASIFMA), released on Tuesday, found publishers have made little progress in meeting these standards.

“It is clear that non-EU administrators continue to face many of the same issues that they have struggled with in our first survey in 2017,” said John Ball, an ASIFMA managing director.

EU banks and asset managers can only use compliant benchmarks for hedging or funding. If one does not exist in a market, that could force EU entities to leave, the report said.

Fifty-five important benchmarks in the region could be affected by the rules, including some in Japan, Hong Kong and South Korea.

Will Hallatt, head of Asia financial services regulation practice at law firm Herbert Smith Freehills, said a separate, stronger focus on MifID II, another European Union law, when BMR was being drafted meant the latter got less attention.

“Now, ironically the two-year delay means it may not get attention again because it becomes effective the same day that US dollar and GBP Libor cease to exist,” said Mr. Hallatt, whose firm co-wrote the report.

“I’m calling 1 January, 2022, benchmark-aggedon.”

It is unclear which benchmarks in Asia can comply in time.

Administrators can comply if their local jurisdiction is considered “equivalent” to the EU’s regime, if they are “recognized” by a regulatory authority in an EU member state, or if they are “endorsed” by an EU benchmark administrator.

Administrators surveyed by ASIFMA reported practical difficulties with all three.

If EU companies cannot use a benchmark, local business may not be sufficient to sustain it.

“Everyone knows Libor is going, but which other benchmarks will disappear will only be known much closer to the deadline,” said Mr. Hallatt. — Reuters