LCH and CME to start clearing SOFR swaps in third quarter

Scramble to offer clearing aimed at cutting clients’ margin and capital costs

SOFR competition
Infopro Digital montage

The two largest clearers of US dollar interest rate swaps will start clearing derivatives referencing the new secured overnight financing rate (SOFR) in the third quarter – ahead of the first quarter of 2019 targeted by the Alternative Reference Rates Committee.

LCH will clear outright SOFR swaps versus fixed and basis swaps versus Libor out to 50 years, and basis swaps versus the Effective Federal Funds Rate out to 30 years. CME will initially clear all three products out to at least five

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: