FSB says swaps users to be pushed away from Libor
Derivatives market participants may have to be pushed into a new, multi-benchmark world, says FSB in Libor reform recommendations
Regulators in the UK, US and elsewhere are prepared to break the derivatives market's reliance on Libor, and push participants towards a range of alternative reference rates – some of them untested or illiquid – according to a report on the reform of interest rate benchmarks that was published yesterday by the Financial Stability Board (FSB). Officials envisage using tools ranging from moral suasion to margin requirements.
The report endorses what the FSB calls a multiple-rate approach – the
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