ThinkMarkets to change interbank benchmark rate for calculating overnight interest
Online trading company ThinkMarkets has announced new overnight funding benchmarks.
As of 13 December 2021, the broker is changing the interbank benchmark rate used to calculate overnight interest. This is due to a number of current Interbank Offered Rates ceasing to exist, including London Interbank Offered Rate (LIBOR).
ThinkMarkets will be replacing the current LIBOR benchmark with new benchmarks shown below.
Any overnight interest calculations will be based on the new benchmark rates with spread adjustments and an administration fee applied as of 13 December 2021.
The broker does not expect any significant change to the overnight holding costs regardless of if a trader is long or short. ThinkMarkets does encourage traders to do their own independent research.
