LCH clears first SORA swaps 20 May 2020London Reporter: Natalie Turner
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LCH has cleared the first Singapore dollar interest rate swaps, referencing the Singapore overnight rate average (SORA), making it the first clearinghouse to offer this derivative product.
The SORA swaps were launched in collaboration with the market and in response to customer demand, LCH says, with Standard Chartered was party to the first SORA cleared derivatives trade.
LCH says it has implemented clearing of SORA swaps as the industry continues to adopt alternative interest rate benchmarks.
The clearinghouse also offers swaps clearing referencing the euro short-term rate, the secured overnight funding rate, the Swiss average rate overnight rates, along with sterling overnight indexed average futures.
鈥淐learing this product is a vital step in the transition to broader adoption of SORA across the Singapore market,鈥� comments Daniel Koh, global head of treasury markets at Standard Chartered.
鈥淚n turn, we are pleased to be able to offer SORA swaps to our clients for hedging,鈥� he adds.
Kate Birchall, head of Asia Pacific at LCH, says: 鈥淭he introduction of clearing derivatives referencing SORA is another important milestone in the global efforts to move to alternative reference rates.
鈥淐learing this product has involved close collaboration with a variety of stakeholders in Singapore and the wider market. We are pleased to bring these efforts to fruition by being the first to offer these new cleared products to our members and their clients to facilitate increased efficiencies.鈥�
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