The Swiss National Working Group on Reference Rates has proposed using backward-looking compounded rates based on SARON. In the United States, a similar proposal was made by the Federal Reserve Bank of New York in its December 2008 report to Congress.
The Swiss National Working Group on Reference Rates has proposed using backward-looking compounded rates based on SARON. The suggested plan to shelve attempts to create forward-looking term rates for SARON-linked cash products puts the Swiss market at odds with other regions, and the lack of visibility has raised concern among corporates.