Annex 1: What rates should firms be transitioning LIBOR-linked instruments to? Annex 2: Alternative Currency Tracker Annex 3: Key Resources
LIBOR is available in five currencies. Each relevant jurisdiction has established a recommended alternative to LIBOR.
The Working Group on Sterling Risk Free Reference Rates’ preferred benchmark for the transition for sterling LIBOR-linked instruments is the Sterling Overnight Index Average (SONIA).
The Alternative Reference Rates Committee (AARC) has recommended the Secured Overnight Financing Rate (SOFR) as the alternative to USD LIBOR.
The Working Group on Euro-Risk Free Rates has recommended the Euro Short-Term Rate (€STR) as the alternative to EUR LIBOR.
Linklaters have produced an IBOR and AAR Currency Tracker which contains further information on alternative currencies.
The National Working Group on Swiss Franc Reference Rates has recommended the Swiss Average Rate Overnight as the alternative to CHF LIBOR.
The Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks has recommended the Tokyo Overnight Average (TONA) as the alternative to JPY LIBOR.
Members will find more information on LIBOR transition at the following sources: