The Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee have identified the Singapore Overnight Rate Average (SORA) as the alternative interest rate benchmark for the Singapore Swap Offer Rate (SOR) and have set out a roadmap for this transition.
SORA is an interest rate benchmark based on the average rate of unsecured overnight interbank SGD transactions brokered in Singapore. Administered by MAS, SORA is underpinned by a deep and liquid overnight funding market, and is commonly monitored by money market participants as a reflection of daily conditions in SGD money markets.
This shift is necessary given the expected discontinuation of USD LIBOR, following the announcement by the UK regulatory authorities that the benchmark will not be sustained by regulatory powers after end-2021. SOR relies on USD LIBOR in its computation methodology and the likely discontinuation of LIBOR after end-2021 directly impacts the future sustainability of SOR.
The industry-wide interest rate benchmark transition from SOR to SORA is overseen by the Steering Committee for SOR & SIBOR Transition to SORA (SC-STS), a group of industry participants convened by MAS.
Highlights
About SORA
Transition Roadmap
Announcements
Publications
Events
Frequently Asked Questions