BoE has published the minutes from the 13 October meeting of its working group on Sterling Risk-Free Reference Rates (RFRs). The group:
- agreed the importance of ensuring that a broad range of market participants with two-way interest across the term structure would be willing to switch to the selected RFR;
- discussed plans around transitioning derivatives to the selected RFR, noting that, were the group to choose the Sterling Overnight Index Average, the transition risks would be lower; and
- debated how to replace LIBOR with the RFR for a meaningful proportion of relevant contracts such as swaps.