Viable Benchmark Replacement Options

26 June 2023


New Zealand Financial Markets Association (NZFMA), as benchmark owner, and its subsidiary New Zealand Financial Benchmark Facility Limited (NZFBF), as benchmark administrator, have issued a consultation document seeking submissions on viable options for establishing an interest rate benchmark to potentially replace BKBM.


NZFBF formed the BKBM Working Group (WG) in 2022, consisting of BKBM price-makers and benchmark users. The WG has explored whether a suitable replacement benchmark for BKBM might be developed that will comply with the FMA’s regulations for Benchmark Administrators (FMC Regulations 2014; Schedule 28) and align with the IOSCO Principles for Financial Benchmarks and global benchmark developments. 


The closing date for submissions is 18 August 2023


BKBM will continue to operate as usual, and no decision has been made to cease its production.


The consultation document, the first of two planned consultations, is available here.