LCH to clear BSBY swaps from November 29
Addition of much-maligned benchmark follows methodology enhancements and jump in SOFR trading
LCH will begin clearing swaps linked to Bloomberg’s short-term bank yield index, or BSBY, on Monday, becoming the second central counterparty to handle derivatives on a rate which has attracted regulatory ire and which does not yet comply with UK benchmark rules.
“LCH will start clearing BSBY swaps from Monday 29 November 2021,” confirmed a spokesperson at LCH’s parent group, LSEG.
The launch comes exactly two weeks after US competitor CME began clearing the instruments. Data from the
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