Alternative reference rate

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Interest rates - reference rates - benchmarks.

Reference rates are benchmark interest rates, used as a basis for calculating other interest rates between market participants.

Examples include borrowings and derivative financial instruments, such as interest rate swaps.


An alternative reference rate is an interest rate designed to replace a prevailing interest rate benchmark.

Benchmark rates being retired and replace over time include LIBOR.

Alternative reference rates include SOFR, SONIA, AONIA and SARON.


See also


Other links

A World without Libor - FCA speech - July 2018

The future of LIBOR: what you need to know, ACT & LMA, March 2018

2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May