What Are the Replacement Benchmarks and Which Ibors Are Changing?

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What Are the Replacement Benchmarks and Which Ibors Are Changing?

MUFG (Europe N.V.) A member of MUFG, a global financial group This presentation should not be viewed as a ‘personal recommendation’ within the meaning of the Financial 1 Conduct Authority rules. 2020 Mitsubishi UFJ Financial Group IBOR Transition Programme WHAT ARE THE REPLACEMENT BENCHMARKS AND WHICH IBORS ARE CHANGING? Some examples of commonly used benchmarks which are either being replaced or benchmarks which are having their methodology amended are set out in the table below. Note that the below table is not an exhaustive or determinative list of alternate rates for each of the IBORs set out nor is it representative of MUFG's views on any alternate rates. There may be other benchmarks or IBORs which are either discontinued or where changes have or will be made to their methodology. Currency Current rate Alternate Rate Anticipated Developments SARON (Swiss Average Rate CHF CHF LIBOR Transition to SARON Overnight) Transition to €STR. EONIA €STR (Euro Short-Term continues to exist under a new Rate), the RFR for EUR, methodology since 2 October EUR EONIA published since 2 October 2019 to allow a smooth transition 2019. to €STR and will be discontinued on 3 January 2022. [3] Multiple rate approach. The reformed EURIBOR is expected to continue alongside Reformed EURIBOR, €STR, €STR. EURIBOR or EUR the RFR for EUR, has been EUR As with other LIBORs, EUR LIBOR published since 2 October LIBOR is expected to be 2019. discontinued, market participants are expected to transition to €STR. [4] This presentation should not be viewed as a ‘personal recommendation’ within the meaning of the Financial 2 Conduct Authority rules. SONIA (Sterling Overnight Index Average) was subject to GBP GBP LIBOR a number of reforms and Transition to SONIA. these were implemented from 23 April 2018. HONIA (Hong Kong Overnight Index Average), the pre- Multiple rate approach. HIBOR is HKD HIBOR existing RFR for HKD. expected to continue alongside Reforms to HONIA are HONIA. currently being considered. TONAR (Tokyo Overnight Multiple rate approach. JPY JPY LIBOR and Average Rate), the RFR for TIBOR is expected to continue TIBOR (Japanese JPY also called TONA, is a JPY alongside TONAR. It is possible Yen TIBOR and pre-existing rate. TIBOR that Euroyen TIBOR will be Euroyen TIBOR) (Tokyo Interbank Offered discontinued. Rate) is being reformed. SIBOR SIBOR, a pre-existing rate largely (Singapore SGD Reformed SIBOR. used for cash products which is Interbank Offered undergoing reform. Rate) SOR rate is actively being The Association of Banks in phased out, as SORA Singapore and the Singapore SOR (Swap Offer (Singapore Overnight Rate SGD Foreign Exchange Market Rate) Average) is introduced as its Committee will start the new RFR benchmark. Multiple consultation process in H1 2020. rate approach is expected. SOFR (Secured Overnight USD USD LIBOR Financing Rate) has been Transition to SOFR. published since April 2018. This presentation should not be viewed as a ‘personal recommendation’ within the meaning of the Financial 3 Conduct Authority rules. .

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