Banking Law

Early Libor Shift for Derivatives Is Weighed by Clearing Houses

Jan. 14, 2021, 4:46 PM

Global clearing houses are considering whether to shift trillions of dollars of interest-rate derivatives away from the London interbank offered rate weeks before the benchmark expires.

LCH Ltd. is consulting clients about an exit strategy for swaps before the possible retirement of multiple Libor benchmarks at year-end, according to Phil Whitehurst, head of service development, rates at SwapClear, which is part of the firm. CME Group Inc. opened a similar consultation on Thursday.

Read More: Libor Proving Hard to Kill in $200 Trillion Derivatives Market

The proposals could address limited progress to replacement rates in the derivatives industry. LCH alone...

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