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
Hedge funds continue 2017 run
23 November 2017 | Madrid | Reporter: Drew Nicol
Global AUM of hedge funds rose 24 percent to $3.2 trillion in the past two years, according to data captured by IOSCO’s latest market survey.
Goldman Sachs appointed by Thrivent for agent lending
23 November 2018 | Minneapolis | Reporter: Jenna Lomax
Thrivent Financial has appointed Goldman Sachs as it new lending agent
ICMA maps repo and cash bond operations
22 November 2017 | Zurich | Reporter: Zsuzsa Szabo
ICMA has launched a free-to-read mapping directory for more than 80 technology solutions for repo and cash bond operations
FCA publishes MiFID II guide
22 November 2017 | London | Reporter: Jenna Lomax
The guide focuses on the regulatory regime in MiFID II for trading venues and data reporting services providers
Hedge fund industry reaches new highs in Q3
22 November 2017 | London | Reporter: Zsuzsa Szabo
The hedge fund industry has recorded strong performance in Q3 2017, after stumbling in 2016, according to Preqin
India reviews SBL position limits
21 November 2017 | New Delhi | Reporter: Zsuzsanna Szabo
The Securities and Exchange Board of India has altered its securities lending rulebook, following market calls for change
EU Commission opens consultation of SFTR TR fees
21 November 2017 | Paris | Reporter: Drew Nicol
UK-based trade repositories may be forced to shoulder additional third-party recognition fees to operate under EU regulatory frameworks post-Brexit, according to proposed EU Commission rules