Home Markets BOT Urges Faster Adoption of THOR by Market Participants

BOT Urges Faster Adoption of THOR by Market Participants

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The BOT’s issuance of floating rate notes referencing THOR has drawn interest from investors and helped to lower spreads in the OIS market.

The BOT (Bank of Thailand) has said in a statement that the Thai financial market is becoming increasingly ready to adopt THOR, the replacement reference rate for THBFIX.

THBFIX is a reference rate widely used in bond and cash products. It will be discontinued on 30 June 2023, as its computation relies on USD LIBOR, which will likewise fully cease publication on 30 June 2023.

According to BOT Assistant Governor (Financial Markets Operations) Alisara Mahasandana, the Thai financial market has developed a variety of financial products based on THOR which include short- and long-term credit facilities, bonds, structured notes.

This coupled with the development of a OIS (Overnight Indexed Swap) market that provides participants with risk-hedging and capital management tools, the financial market is…

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