Gensler: OIS rate could be replacement for Libor
New benchmark must be based on "facts, not fiction", says CFTC chairman
Libor should be replaced with a reference rate derived from a traded market, Commodity Futures Trading Commission (CFTC) chairman Gary Gensler told a conference today in New York, and pointed to the overnight indexed swap (OIS) rate – which has become the standard discounting rate for some over-the-counter derivatives – as an option.
Gensler delivered a scathing assessment of the structural flaws in the Libor submission process, claimed banks have continued to submit unrealistically stable
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