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 Transition to SORA (SC-STS), a group of industry participants convened by MAS.

Highlights

SC-STS’ Response to Feedback Received on Proposed Roadmap for Transition from SOR to SORA
19 March 2020

Media Release: Industry Steering Committee Sets Out Key Priorities to Achieve Smooth Transition to SORA
19 March 2020

ABS-SFEMC Public Consultation on Roadmap for Transition of Interest Rate Benchmarks: From SOR to SORA
30 August 2019

About SORA

Transition Roadmap

Announcements and publications

Events

Frequently Asked Questions