Another example is that of swap reference rates for constant maturity swaps. The rate that is used is calculated daily by an independent organisation, the International Swaps and Derivatives Association, from quotes from a large panel of banks.
In the credit derivative market a similar concept to reference rates is used. Pay offs are not determined by a rate, but by possible events. In this case, the reference event has to be a very precisely defined credit event, to make sure there can be no disagreement on whether the event has occurred or not.
Typically the benchmark LIBOR is the three-month rate.
Term 'Prime Rate' Goes Incognito at Minneapolis Bank: Now Oft Misunderstood Title Changed to 'Reference Rate.' (First Bank Minneapolis)
Sep 25, 1984; CHICAGO -- The more some things change, the more they remain the same. While First Bank Minneapolis is changing the name it puts...