Interest Rate Benchmark Reform: Hong Kong, Singapore and recent global developments

The reform of interest rate benchmarks began in earnest with the publication by the Financial Stability Board (FSB) of its recommendations in July 2014 and stepped up in urgency following indications by the UK Financial Conduct Authority (FCA) (firstly in mid-2017) that the London Interbank Offered Rate (LIBOR) may not be sustainable and that the market should transition away from LIBOR to alternative reference rates by end-2021.

In this bulletin, we review the progress of interest rate benchmark reform in Hong Kong and Singapore and discuss the recent key global developments in this complex and fast-moving space.