Libor Shift Quickens in Singapore as Contracts Jump Fourfold
- Amount tied to new SORA benchmark rose to $87 billion in July
- Most Singapore interest-rate swaps will be SORA-based: Maybank
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Banks in Singapore are embracing a new benchmark for derivatives transactions as the city state prepares to transition away from Libor by the end of September.
The outstanding amount of financial contracts pegged to the Singapore Overnight Rate Average jumped fourfold to $87.4 billion in July from May, according to data from LCH Ltd. But, that’s still a fraction of the $1 trillion of products that are linked to the Singapore Swap-Offer Rate, which is computed using Libor, figures from a steering committee set up by the central bank show.