Benchmark reform could hit cross-currency basis

Traders criticise fragmented development of new risk-free rates

Currency-based working groups are taking different approaches to new reference rates

A lack of co-ordination between working groups looking to replace Libor in swap contracts could have a knock-on effect on cross-currency basis rates, derivatives users warn.

The groups, which are set up by currency, are looking to identify alternative risk-free rates (RFRs) that could be used in derivatives contracts instead of existing benchmarks such as Libor. But with some groups leaning