The central clearing of OTC SORA derivatives includes SORA overnight indexed swaps and basis swaps between SORA and SOR.
The committee noted that enabling central clearing arrangements for SORA OIS and SORA-SOR basis swaps will catalyse interbank activity in these derivative products, and anchor SORA’s role as the replacement benchmark for SOR. Kate Birchall, LCH head of Asia-Pacific, said:"The introduction of clearing derivatives referencing SORA is another important milestone in the global efforts to move to alternative reference rates. Clearing this product has involved close collaboration with a variety of stakeholders in Singapore and the wider market."
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