Switzerland moves ahead with backward-looking term rate

Lack of forward visibility in proposed rate provokes concern among corporates

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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

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