The Treasury Markets Association has released a consultation paper on the alternative reference rate for HIBOR
On 1 April 2019, the Treasury Markets Association (TMA) released a consultation paper on issues relating to the alternative reference rate (ARR) for the Hong Kong Interbank Offered Rate (HIBOR).
The TMA has identified the HKD Overnight Index Average (HONIA) as the ARR for HIBOR, after reviewing the characteristics of ARRs for the LIBOR currencies and taking into account the Financial Stability Board’s guiding principles. HONIA is a nearly risk-free overnight interbank funding rate based solely on transaction data.
The TMA invites industry stakeholders’ feedback to the proposed refinements to HONIA. The consultation will close on 30 April 2019.
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