LCH will start clearing 50-year interest rate swaps linked to the new sterling overnight risk-free rate (RFR) by the end of the year, an executive at the clearing house has said.
In April, the UK’s Working Group on Risk-Free Reference Rates voted for a reformed version of the current sterling overnight rate, Sonia, to be the official alternative reference rate to Libor for the sterling swap market.
At present, Sonia swaps are cleared only up to 30 years. Regulatory and markets sources say
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