New Reference Rate Use Committee by New York Fed

By Michael S. Derby

NEW YORK (Reuters) – Federal Reserve Bank of New York President John Williams announced a new panel aimed at improving benchmark reference rates used in financial markets.

Williams introduced the Reference Rate Use Committee, which will gather market participants to enhance integrity, efficiency, and resilience of interest rate benchmarks, including those published by the New York Fed.

In a prepared speech for an event at the bank, he mentioned that the inaugural meeting is set for next month.

A separate press release from the bank detailed that the committee will focus on critical issues surrounding reference rates, such as their evolving use and changing underlying markets. Additionally, it will promote best practices associated with these rates.

The committee’s first chair will be Morgan Stanley’s deputy chief risk officer, who emphasized the need for close collaboration between the financial industry and public sector to ensure sustainable reference rate utilization.