FSB Sees Progress on Risk-Free Interest-Rate Benchmarks

Global regulators are making progress in identifying potential risk-free benchmark rates as they respond to manipulation scandals that have shaken the financial industry, the Financial Stability Board said.

“Detailed data collection exercises have been undertaken in key markets and work is now underway to identify potential” risk-free benchmark rates where these don’t exist, the Basel-based FSB said in a report on Thursday. “An issue that several authorities are considering is how to facilitate the availability of RFRs at terms longer than overnight.”