BoE: Libor reform needs swaps market support

“The dependence on term Libor fixings remains an unnecessary vulnerability,” writes BoE’s Salmon

The Bank of England believes a reformed Sonia would be a viable risk-free rate

Chris Salmon is the Bank of England's executive director for markets

The Libor scandal exposed manipulation and false reporting. It also highlighted that the benchmark and its pattern of use had failed to respond to developments in financial markets. The ongoing reform of Libor is part of the solution. But, crucially, alternative reference rates are needed, particularly in derivatives markets