The meeting, which will take place at the Federal Reserve Bank of New York, represents an important step toward implementing recommendations outlined in a Financial Stability Board (FSB) report (PDF) Leaving the Board, released in July. As the FSB report noted, cases of attempted manipulation and false reporting, along with less liquid interbank unsecured funding markets, have undermined confidence in existing reference rates in this period.

The Federal Reserve is interested in seeing market participants work toward alternative reference rates that are based on risk-free (or nearly risk-free) rates based on a robust and liquid underlying market. The Federal Reserve also intends to consult with a wide group of market participants as it continues this process.

“Reference rates are one of the foundations of the financial system. Certainly, it is in the interest of everyone, from the residential mortgage holder to the financial institutions that heavily use these rates, that they have integrity and be well constructed and resistant to manipulation,” said Federal Reserve Board Member Jerome H. Powell.

A list of organizations expected to attend the meeting is attached.