A clearing obligation for OIS referencing SOFR could help avoid liquidity fragmentation.
This will facilitate industry transition from USD LIBOR.
The consultation is based on the progress made with the benchmark transition in interest rate derivatives.
The use of risk-free rates has also reached an all-time high.
The regulator voted to approve a proposed rulemaking to modify the interest rate swap clearing requirement.
Exchange-traded options is one of the remaining markets that needs to shift away from USD LIBOR.
The ISDA-Clarus RFR Adoption Indicator rose to a monthly average of 36.6%.
Financial Stability Board said firms should have ceased new use of USD LIBOR.
Banks are free to choose a credit sensitive rate that is suitable for them.