ISDA Regional Japan: OIS Used As Libor Stopgap

Japanese end users have started using the overnight indexed swap compound as an alternative to Libor as a discount rate benchmark to price over-the-counter and exchange-traded derivatives. According to a panellist at the International Swaps and Derivatives Association’s 2013 Annual Japan Conference at the Ritz Carlton in Tokyo today, the use of OIS, however, is seen as stopgap until a credible long-term solution is found.