Libor transition practices for cross currencies should be aligned internationally, Iosco says

12 August 2019 9:36pm
Regulators and market participants are considering how to align Libor transition practices internationally in part to boost development of the cross-currency market in new interest-rate benchmarks, the International Organization of Securities Commissions said.

“Many loans are multi-currency, and inconsistency in conventions can cause potential complications,” said Iosco’s statement last week urging industry substitution of risk-free rates, or RFRs, for the fading Libor benchmark.

It added: “This issue is important in part to help the cross-currency market develop in RFRs.”