While US derivative dealers have begun moving towards a post-LIBOR world, there are concerns that the transition is not progressing at a fast enough pace. The European Central Bank (ECB) has been working on plans to introduce an electronic system for clearing derivatives trades in order to reduce costs and speed up transactions.
While US derivative dealers have begun moving towards a post-LIBOR world, there are concerns that the transition is not progressing at a fast enough pace. Current low volumes of SOFR-linked products could lead to poor fallback choices and reduce the appeal of the RFR ahead of the end of LIBOR.