[4] At the other end of the spectrum, the Swiss working group has found that a term RFR is not feasible given the low level of activity in derivatives referencing the Swiss franc RFR. [5] While the development of term RFRs is desirable, it is not yet clear that they will be sufficiently robust.
In this context, we encourage market participants preparing for the LIBOR transition to work on using overnight RFRs rather than waiting for the development of term RFRs. Furthermore, the FSB has made it clear that derivatives markets will largely need to transition to the overnight RFRs to ensure financial stability.