HIBOR to intensify fixing mechanism: HKMA

To improve its transparency and robustness.

According to a release, the Monetary Authority announced a package of measures to strengthen the fixing mechanism for the Interbank Offered Rate or HIBOR, enhancing its transparency and robustness.

The authority said it accepted the Association of Banks and Treasury Markets Association proposals, and asked them to take forward the measures in six months.

They 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.

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