Strict term SOFR trading rules ‘permanent’, says Fed’s Bowman
Official says restrictions on use of term SOFR swaps “should not be expected to change”
A senior official at the Federal Reserve Board has said the current ban on interdealer transactions in derivatives linked to the term version of the US secured overnight financing rate will become a permanent fixture of the post-Libor world, putting the onus on dealers to adapt to a rates environment replete with hedging challenges.
David Bowman, a senior associate director at the Fed and a key
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