Instead, we will encourage key market participants to further the work done by the FSB’s MPG by narrowing down the list of alternatives and developing them into robust reference rates that meet agreed-upon international standards and best practices.12 There are enough suggestions on the MPG’s list to inspire confidence that we should be able to find common ground.
Any alternative would, of course, need to be in accord with the IOSCO principles mentioned earlier, and some potential alternatives would take time to fully develop. But the establishment of alternative reference rates for certain products is in our shared interests and would substantially strengthen the financial system.