Cross-currency swaps will use RFRs on both legs, says JP exec

Despite slow start, all-RFR swaps will become the market standard within a year, according to Tom Prickett

Cross-currency swap markets have yet to embrace alternative risk-free rates (RFRs), such as the US secured overnight financing rate (SOFR), but these overnight benchmarks will become the standard on both legs of a trade by the end of next year, according to a senior JP Morgan rates trader.

Months after the first RFR-linked cross-currency swaps were stuck across various currency pairs, reported volumes remain sparse, with the majority of volume still transacted using Libor rates on both legs of