Among other things, the working group will be tasked with identifying and recommending alternative risk-free rates and studying potential issues in relation to transition to these rates in line with its terms of reference. Such rates could serve as an alternative to the current benchmarks used in a variety of financial instruments and contracts in the euro area.
Following the call for expressions of interest issued in November 2017, the working group will comprise 21 credit institutions as voting members, five institutions as non-voting members and one invited institution. The four public institutions behind this announcement will have observer status. [...]
The four public institutions also announced that Koos Timmermans, chief financial officer and vice-chairman of ING Group, would chair the working group. Mr Timmermans was approached on the basis of his longstanding experience in European banking and financial markets.
The working group will seek feedback from a wide range of stakeholders to create the transparency needed to achieve broad consensus around these topics. Institutions that were not selected for the working group might still have the opportunity to contribute to the project by participating in its substructures. In this respect, the call for expression of interest remains open to market participants who would like to be involved in the discussions at a sub-group level. [...]
Full press release
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