(18)The Euro Risk-Free Rate Working Group, in its recommendation of 11 May 2021, indicated that the last reset methodology for periods longer than three months may create accounting and hedging challenges caused by the structural differences between the IBOR (as forward looking) and the SARON (as backward-looking), which are particularly pronounced in case of longer-term tenors. As an alternative methodology, the Swiss NWG, on 1 July 2021 recommended the use of the ‘last recent’ methodology with 1-month observation period. Such methodology consists of determining the interest rate for the upcoming period on the basis of the observed compounded interest rate for a prior period that is shorter than the interest period at hand. Taking stock of the recommendations of the Euro Risk-Free Rate Working Group, and in order to remain as close as possible to the original reference period for each tenor, the 3-Month SARON Compound Rate was considered more appropriate than the 1-Month SARON Compound Rate for CHF LIBOR tenors of 3 months and beyond. It is, therefore, considered appropriate to use SARON 1-Month and SARON 3-Month Compound Rates as replacements for, respectively, CHF LIBOR 1-Month and CHF LIBOR 3-Month and to use SARON 3-Month Compound Rate also as a replacement for CHF LIBOR 6-Month and 12-Month.