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LCH targets hardwired pre-cessation triggers

Proposal aims to align transfer pricing for cleared and bilateral markets in the event of split on ‘zombie Libor’ triggers

LCH-offices-in-Aldgate
LCH headquarters in London
Photo: Brett Gamston

The largest clearer of interest rate swaps is proposing to automatically flip cleared Libor swaps to alternative fixings if regulators deem the ailing benchmark to be non-representative of underlying markets.

In a consultation on changes to its rule book, released on January 27, LCH is seeking approval from users of its SwapClear service to firm up its procedure for switching benchmarks, amid

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