This initiative partly emanates from a coordinated response by international regulators and central banks, to the instances of attempted and actual manipulation of key global interest rate benchmarks and reference interest rates, in particular the London Interbank Offered Rate in 2012.
Consequently, the Official Sector Steering Group1, established under the auspices of the Financial Stability Board, recommended that interest rate benchmarks should be underpinned by transaction data and that risk-free interest rates benchmarks should be developed to support certain financial instruments, including derivative contracts.