Hong Kong strengthens HIBOR mechanism

Measures intend to boost HIBOR’s transparency and robustness.

The Monetary Authority announced a series of measures to strengthen the fixing mechanism for the Hong Kong Interbank Offered Rate or HIBOR.

The measures include transferring the HIBOR fixing process's administrator function to the Treasury Markets Association; instituting an effective surveillance and governance structure for the administrator function with broad representation of HIBOR stakeholders and developing a comprehensive code of conduct, including a clear rate submission guidance, for reference banks to observe.

HKMA said it accepted proposals from the Association of Banks and Treasury Markets Association and asked them to implement the measures in six months.

Other measures include phasing out HIBOR fixings with little market demand and reviewing the reference banks panel composition every 12 months.