Sometimes timing is everything. US derivatives dealers are moving inexorably towards a post-Libor world but, some argue, not fast enough, affecting the industry’s preparations for the day the disgraced benchmark ceases to exist. “We’re ahead of schedule – whether the industry’s plan should have been more aggressive, there are good grounds to make that case,” says the chief risk officer of a buy-side firm. A number of products linked to the secured overnight financing rate (SOFR), the US dollar Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content. To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact [email protected] to find out more. You are currently unable to copy this content. Please contact [email protected] to find out more.
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 RFR-linked products could lead to poor fallback choices and reduce the appeal of the SOFR ahead of the end of LIBOR.