US dollar interest rate swaps that reference the overnight indexed swap (OIS) rate catapulted ahead of equivalent derivatives linked to Libor for the first time in February, according to data from Clarus Financial Technology.
Banks say the sudden spike in volume in OIS swaps is due to a combination of money market fund (MMF) reform dating back to October last year, concerns about the future of the Libor benchmark, and expectations of further interest rate hikes from the Federal Reserve.
- Brexit novations ‘on hold’ to gain reg relief
- Banks hope final FRTB rules will ease NMRF burden
- Functional programming reaches for stardom in finance
- People moves: Bank of America names new Apac chiefs, Wilkinson leaves LGIM, Lloyds loses Coutte, and more
- Mifid data publishers drag feet on Esma guidelines