Trading

Clearing houses, exchanges gear up to move trillions away from Libor

Dress rehearsals are ramping up as the end of the rate nears

LCH anticipates it will convert $45tn of swaps tied up in more than 500,000 contracts when it executes the move to the new rate
LCH anticipates it will convert $45tn of swaps tied up in more than 500,000 contracts when it executes the move to the new rate Photo: Jason Alden/Getty Images

Exchanges and clearing houses are racing to ready their systems as trillions of dollars in legacy Libor contracts must move to a new rate by the summer.

Hundreds of thousands of dollar Libor swaps need to be changed to the Secured Overnight Financing Rate (Sofr), the replacement rate for dollar Libor, when it comes to an end on 30 June.

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