LCH sets €STR swap clearing launch date
Clearing house to offer the swaps from October 21, discounted at Eonia
LCH will start clearing swaps linked to the European Central Bank’s new euro overnight risk-free rate from October 21, the UK clearing house has announced.
The move follows Frankfurt-based Eurex Clearing, which said in July it would begin clearing swaps linked to the euro short-term rate (€STR) from November 18.
Traders say clearing €STR swaps is an important step in weaning the euro market off Eonia, which authorities plan to phase out.
“We’re looking forward to this product being available
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