that day. in contrast, libor submitters were asked about where they thought their own bank ’ s cost of funds was that day. debelle g ( 2015 ), ‘ benchmarks ’, address to bloomberg summit, sydney, 18 november. see financial stability board ( 2014 ), ‘ reforming major interest rate benchmarks ’, july, available at < http : / / www. financialstabilityboard. org / wp - content / uploads / r _ 140722. pdf > ; and financial stability board ( 2015 ), ‘ progress in reforming major interest rate benchmarks ’, interim report on implementation of july fsb recommendations, july. available at < http : / / www. financialstabilityboard. org / wpcontent / uploads / ossg - interest - rate - benchmarks - progress - report - july - 2015. pdf >. see council of financial regulators ( 2015 ), ‘ the evolution of the bbsw methodology ’, consultation paper, october. available at < http : / / www. cfr. gov. au / publications / consultations / evolution - of - the - bbsw - methodology / >. see australian securities & investments commission ( 2015 ), ‘ report 440 financial benchmarks ’, july. available at < http : / / download. asic. gov. au / media / 3285136 / rep440 - published - 8 - july - 2015. pdf >. bis central bankers ’ speeches in response to the prospect of a large number of the participants on the submission panel no longer being willing to provide submissions, the calculation of bbsw was reformed in 2013 in line with the iosco principles for financial benchmarks, which were issued in july 2013. 5 since 2013, the australian financial markets association ( afma ) has calculated bbsw benchmark rates as the midpoint of the ( nationally ) observed best bid and best offer ( nbbo ) for prime bank eligible securities, which are bank accepted bills and negotiable certificates of deposit ( ncds ). currently, the prime banks are the four major australian banks. the rate set process uses live and executable bid and offer prices sourced from interbank trading platforms approved by afma, these platforms are currently icap, tullett prebon and yieldbroker. the bids and offers are sourced at three points in time around 10. 00 am each day. while the outstanding stock of bills and ncds issued by

sharing some further context for the board's development of the bba before previewing its design and key attributes. as outlined in the anpr, the board strove to develop a framework that encompassed all material risks across the entire supervised enterprise. we favored an approach that is as standardized as possible, rather than relying on internal capital models of supervised firms, in order to promote transparency and facilitate comparability across firms. we also aimed to strike an efficient balance between simplicity and risk sensitivity in order to ensure accurate reflection of risks while minimizing regulatory burden. to further limit regulatory burden, the board envisioned a bba that would rely upon existing u. s. accounting and capital frameworks to the greatest extent possible. in designing the bba, there were, of course, a number of ideas for how we should construct this framework. at the outset, we decided against applying the board's bank holding company capital rules to supervised insurance firms at the enterprise level, in light of the very different business models of insurance and banking. we considered that a capital approach akin to the european solvency ii framework would not adequately incorporate u. s. accounting frameworks that, relative to other approaches, tend to be less prone to volatility and procyclicality. volatility in a valuation approach that is used in a capital standard can especially affect long - term contracts, with the potential for unintended consequences on the ability of insurers to provide long - term life insurance and retirement planning products. moreover, use of an approach that entails more reliance on internal models could undermine our desire for consistent, cross - firm comparisons and can lack transparency to market participants and supervisors. another framework that could have informed the development of the bba is the ics, but much of ics's evolution has been in the direction of a valuation method and overall framework that reflect approaches used elsewhere in the world. this may not be optimal for the united states insurance market. importantly, the bba will appropriately reflect, rather than unduly penalize, long duration liabilities in the united states, facilitating the continued robustness of product availability in the u. s. that contributes to greater financial security for americans. in the u. s., an aggregation - based approach like the bba could also strike a better balance between entity - level, and enterprise - wide, supervision of insurance firms. 2 / 6 bis central bankers'speeches having spoken enough about what the proposed bba