Shallow liquidity threatens Saron momentum

Swaps on Swiss Libor successor gain traction, but lack of cash products poses liquidity hurdle

The start of any journey may give little indication of the toil that lies ahead, as anyone who has attempted to scale Switzerland’s iconic Matterhorn mountain can attest. The 3,000 metre ascent to base camp is a gentle stroll compared to the arduous 1,400 metre near-vertical climb to the summit, where the going is relentless and there is often no clear path to follow.

The same may be true of the Swiss rates market, which has made light work of the first stage of a transition to Saron, the