Regulatory attacks deal BSBY swaps a crippling blow

Libor successor “dead in the water” but CME sticks with cleared swap plan

Future-looks-bleak-for-BSBY

Swaps tied to Bloomberg’s Short-Term Bank Yield index face a bleak future as a barrage of regulatory attacks have crimped trading and cast doubt on the rate’s long-term viability.

Just five months since the first BSBY swaps traded to great fanfare, the nascent market is faltering. Traded notional in the instruments totalled just $1 billion in September, according to data from the Depository Trust & Clearing Corporation’s (DTCC) Global Trade Repository. While that is double the volume in August

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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 individual account here