The phrase "a reference rate" is correct and usable in written English.
It can be used in financial contexts to refer to a benchmark interest rate used for pricing loans or financial instruments.
Example: "The bank set the interest rate for the loan based on a reference rate established by the central bank."
Alternatives: "benchmark rate" or "standard rate".
swaps use some form of Libor as a reference rate.
It has been estimated that $250tn of swaps use some form of Libor as a reference rate.
It represents the average of prices agreed during 60 seconds' trading, and is used as a reference rate to execute a much larger set of currency deals.
Understandably, much press coverage has been devoted to those personal mortgages and credit cards which use Libor as a reference rate, but the major products which are affected by it are interest rate swaps.
The price of bitcoin varies, depending on the exchange it trades on, and so CME and CFE had to carefully construct a reference rate for their futures contracts that could not be manipulated.
HONG KONG -- The Chinese central bank set a reference rate for the renminbi on Wednesday at a level that signaled Beijing was engineering only a very gradual appreciation of the Chinese currency.
"The CME CF Bitcoin Reference Rate will be a more traditional once-a-day reference rate," says Sandra Ro, executive director and digitization lead.
This fall, CME Group, one of the world's largest derivatives companies, will launch a once-a-day Bitcoin reference rate and a real-time price index, paving the way for even more financial products to be built on top of Bitcoin.
One of the largest derivatives exchanges, CME Group, plans to launch a Bitcoin reference rate and a real-time index that acts as a price discovery mechanism.
One of the largest derivatives exchanges in the world, CME Group, announced in May that, in the fourth quarter of this year, it will launch both a Bitcoin reference rate and a real-time index.
Sir Mervyn King, the Governor of the Bank of England, said he welcomed the recommendations, but added that more work would be needed to ensure that in a future crisis Libor remained a reliable reference rate.
