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Reg rageNovember 27 2017

Moves to change interest rate benchmarks trigger contract concerns

Regulators are working to change the interest rate benchmarks, which underpin many of the world’s derivatives and structured finance products. But doing so could result in legal issues with longer dated contracts. By Justin Pugsley.
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What is happening?

Moves to shift interest rate benchmarks from the Interbank Offered Rate (Ibor) towards more robustly calculated reference rates such as the Sterling Overnight Index Average (Sonia) in the UK and the Broad Treasury Financing Rate (BTFR) in the US are, on the face of it, good news. 

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