There has been a lot of scandal-driven regulatory change in the last 10 years, this is no less true for the reforms to Interbank Offer Rate (IBOR). Benchmark rigging in the US$350 trillion interest rate markets was the catalyst for a move away from the British Banking Association’s London Interbank Offered Rate (LIBOR) calculation to alternative Risk-Free Rates (RFRs).
In light of the Covid-19 pandemic, regulators have, unsurprisingly, followed the lead of their central bank cousins. One consequence is that transformational regulation, like MAS 610 and 1003, has been delayed. This wise course of action affords banks the chance to ensure they have every opportunity to comply and avoid the consequences of not doing so.