LCH won’t back single fix for swaptions switch

Clearing house pledges to “support” multiple solutions to discounting problem

lch-clearnet-app
LCH headquarters in London

Clearing house LCH will not develop an industry-wide method for compensating swaptions holders when the benchmark for interest rate swaps shifts to new risk-free reference rates next year.

A senior figure at the clearer told a conference on October 31 that he viewed the change as a “bilateral issue” to be thrashed out by swaptions counterparties on a case-by-case basis.

The firm’s position will affect the majority of swaptions holders whose contracts reference swaps cleared at LCH.

“I don’t

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