Fed's Williams announces new effort on reference rates

By Michael S. Derby

NEW YORK (Reuters) -Federal Reserve Bank of New York President John Williams said Thursday his bank is launching a new panel with private market participants on the reference rates markets use as benchmarks.

Williams said his bank is launching what he called the Reference Rate Use Committee, which will bring together market participants to “support integrity, efficiency, and resiliency in the use of interest rate benchmarks—or reference rates—across financial markets, including the rates published by the New York Fed."

He added in the text of a speech prepared for delivery at an event at his bank that the first meeting of this group takes place next month.

In a separate press release, the bank said the panel "will focus on key issues regarding reference rates, including how their use is evolving and how the markets underpinning them may be changing too." The statement added the panel "will promote best practices related to the use of reference rates.

Morgan Stanley deputy chief risk officer will serve as the committee's first chair. He said in a press release "it is essential that the financial industry and public sector work closely together to support the sustainable use of reference rates,"

(Reporting by Michael S. Derby)