Traders see easy switch off Libor in Swiss market at year-end

Saron swaps trading still slow but traders say liquidity is rising and see no hurdles to transition

Less than a year before Swiss franc Libor is due to disappear, trading in derivatives referencing its replacement amounts to just a fraction of overall volumes – but Swiss market participants are confident transition off the tarnished benchmark remains on track.

Traders and brokers say a number of hurdles to the switch have now been overcome and point to signs that liquidity in Saron derivatives is starting to grow.

Available data is yet to show a sustained rise in Saron volumes but there is