Bloomberg, IHS Markit join race for SOFR credit add-on
BSBY index seen as ‘easy option’ add-on for regulator-preferred RFR; Markit preps for Q2 launch Print this page
Participants demanding a credit spread add-on for the secured overnight financing rate may now be spoilt for choice. Four firms are vying to be the go-to provider of a bank funding spread, which could be layered onto the Federal Reserve-backed Libor successor in US lending markets.
The newest entrants, Bloomberg and IHS Markit, have devised methodologies which broadly resemble a blueprint from Ice Benchmark Administration (IBA) for its Ice Bank Yield Index (BYI). All three have primary bank
Risk.net
Lack of equivalence forces dealers to shift euro and sterling swaps out of European and UK venues
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Up to 50% of euro and sterling interest rate swaps trading has moved from European and UK venues to platforms in the US since the start of the year, in Brexit’s latest impact on derivatives markets, sources report.
The UK’s transition period with the European Union ended on December 31 without an equivalence arrangement for large parts of the financial services industry. As a result, EU and UK entities are no longer able to trade with each other in some of the most common derivatives on