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Traders see easy switch off Libor in Swiss market at year-end Saron swaps trading still slow but traders say liquidity is rising and see no hurdles to transition Print this page   Less than a year before Swiss franc Libor is due to disappear, trading in derivatives referencing its replacement amounts to just a fraction of overall volumes – but Swiss market participants are confident transition off the tarnished benchmark remains on track. Traders and brokers say a number of hurdles to the switch have now been overcome and point to signs that liquidity in Saron derivatives is st...

Risk.net Report calls on market participants to end reliance on SOR in coming quarters Print this page   Banks have been told to stop offering new derivatives contracts tied to Singapore’s swap offer rate, or SOR, by the third quarter of this year, in a new transition plan unveiled on March 31. A report published by the Steering Committee for SOR and Sibor Transition to Sora proposed that financial institutions should cease the use of SOR no later than the end of September this year, except for the purpose of risk managing existing positions linked to the outgoing benchmark. Th...

Risk.net Stay of execution, RFR illiquidity and fallback reliance slow SOFR adoption Print this page   The derivatives market’s transition to the secured overnight financing rate (SOFR) has stalled since regulators granted US dollar Libor an 18-month reprieve, with traders blaming poor liquidity and the industry’s reliance on new fallback language for a dearth of new swaps linked to the successor rate since November. Five of the most heavily used US dollar Libor fixings will survive until mid-2023, but regulators have insisted that no new Libor risk should be traded after the...

Consultation reveals splits over one-year transition period and internal transfer pricing models

Fallback spreads for all currencies could be fixed together, even if some benchmarks survive past 2021