Early Libor Shift for Derivatives Is Weighed by Clearing Houses
- LCH has $150 trillion of swaps which need to transition
- Move could avoid tight liquidity in final days of benchmark
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Global clearing houses are considering whether to shift trillions of dollars of interest-rate derivatives away from the London interbank offered rate weeks before the benchmark expires.
LCH Ltd. is consulting clients about an exit strategy for swaps before the possible retirement of multiple Libor benchmarks at year-end, according to Phil Whitehurst, head of service development, rates at SwapClear, which is part of the firm. CME Group Inc. opened a similar consultation on Thursday.