Alternative reference rate

Interest rates - reference rates - benchmarks.

(ARR).

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.

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

See also

• Alternate Base Rate
• AONIA
• Benchmark
• €STR
• EURIBOR
• Fallback
• Interest rate swap (IRS)
• Rate fixing
• Reference rate
• Risk-free rates
• SARON
• SOFR
• SONIA

Other resource

• A World without Libor - FCA speech - July 2018