CCPs’ successful Libor switch raises hopes for sterling move
Optimism follows hitch-free conversion of cleared yen, Swiss franc and euro Libor swaps to RFRs
Last weekend’s smooth clearing house swap conversion moving yen, Swiss franc and euro Libor swaps onto the relevant risk-free rates has given market participants confidence that the sterling equivalent later this month will follow suit.
The transition on December 4 and 5 saw more than 100,000 contracts at LCH referencing the three Libor currencies, totalling $6 trillion, switch to the designated replacement rates. Japan Securities Clearing Corporation saw 140,000 cleared yen swaps convert to
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