18 October 2017
Reporter: Jenna Lomax

LCH migrates to new Swiss reference rate

LCH is now clearing Swiss franc interest rate swaps with Saron, a new rate that is being used instead of Swiss franc Libor and Tois.

Basler Kantonalbank, Credit Suisse and Zürcher Kantonalbank are due to be among the first financial services to clear using the new rate from December.

The announcement of the change comes a month after LCH released SwapAgent a new version of client account within its SwapClear service.

To date, SwapClear, LCH's global clearing house, has cleared 30 trillion (USD 30.5 trillion) in Swiss franc-denominated interest rate derivatives since the service’s inception in 2002.

Michael Davie, global head of rates at LCH, said: “LCH is delighted to have worked closely with our members, their clients and the regulators to effect a smooth and timely transition from Tois to Saron.”

“As well as clearing over-the-counter derivatives referencing saron, LCH has adopted this new preferred rate for cash flow discounting and investment benchmarking. It’s testament to the support of our clearing community that this has been such a smooth, effective and comprehensive transition.”

Felix Roudier, head of short-term interest rate trading at Credit Suisse, commented: “The migration from Tois to Saron is a significant step for the Swiss and international market as such we are pleased to be among the first participants to be actively clearing swaps referencing Saron at LCH.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
EXCLUSIVE: Sunil Daswani leaves Northern Trust
21 February 2018 | London | Reporter: Jenna Lomax
Sunil Daswani, head of international securities lending at Northern Trust has left the company
Top of hot stocks: TechnipFMC PLC and Match
21 February 2018 | London | Reporter: Jenna Lomax
TechnipFMC PLC, formed by the merger of oil services companies, led the FIS Astec Analytics hot stocks list for EMEA last week
ISLA responds to BMF’s draft circular
20 February 2018 | London | Reporter: Brian Bollen
The International Securities Lending Association (ISLA) has sent a letter to the German Ministry of Finance responding to the BMF’s draft circular released on 25 January 2018 on the subject of a manufactured dividend rule
SBL Network welcomes independent consultant
20 February 2018 | London | Reporter: Jenna Lomax
SBL Network Limited has appointed Charlotte Clout as an independent consultant
Fidessa sees revenue growth across all regions in 2017
20 February 2018 | London | Reporter: Jenna Lomax
Fidessa has reported that its yearly revenue increased by 7 percent for 2017, ending the year with £353.9 million compared to £331.9 million in 2016
Foreign investment in US down
19 February 2018 | Washington DC | Reporter: Brian Bollen
Official figures, released 15 February, by the US Department of the Treasury show a drop in foreign investment in the US in December
Minium, IBM and Promontory release joint white paper
19 February 2018 | London | Reporter: Jenna Lomax
The patchwork of outdated systems most firms use today is not fit for purpose, according to a white paper jointly released by Minium, IBM and Promontory