The Swiss rates market has shelved attempts to create forward-looking term rates for Saron-linked cash products, and instead will link them to a compounded, backward-looking version of the new overnight rate – putting the Swiss market at odds with other financial centres. At its latest meeting on February 5, the official working group on Swiss reference rates put forward a set of compounded methods for the industry to consider. But some market participants are worried that a backward-looking 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.
The Swiss National Working Group on Reference Rates has proposed using backward-looking compounded rates based on SARON. The suggested plan to shelve attempts to create forward-looking term rates for SARON-linked cash products puts the Swiss market at odds with other regions, and the lack of visibility has raised concern among corporates.