The HKAB welcomes the release of the report and will study it in detail over the coming weeks.

In light of recent developments in the international markets including various rate-setting reviews in other markets, in July this year the HKAB initiated a comprehensive review of HIBOR's rate-setting mechanism and governance process. Accordingly, the HKAB set up a Market Standard Committee to lead the review process and commissioned the TMA to undertake the review and make recommendations as appropriate in the context of the Hong Kong market.

Anita Fung, Chairperson of the HKAB, said: "The HKAB is pleased with the progress of the review. We took a proactive approach to conduct the review to ensure that the HIBOR system continues to work effectively with respect to changes in the industry's environment, to ensure rate setting reflects market conditions and to enhance the governance for the fixing regime."

The HKAB has engaged an independent consultant firm to conduct a wider consultation with industry. The HKAB will consolidate industry views and submit them to the Hong Kong Monetary Authority in due course.