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. 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.