BoE’s post-Libor clearing plan leaves yen swaps in limbo
Sonia and €STR will be mandated for clearing, while Tonar must wait until liquidity settles
Japanese yen swaps will be exempt from mandatory clearing in the UK from December 6 under new proposals from the Bank of England designed to cement the shift away from Libor rates.
The plans, which were released for consultation on May 20, would see most Libor swaps removed from the UK’s clearing obligation for over-the-counter derivatives on a staggered schedule ahead of the benchmark’s year-end cessation. The BoE expects to issue new clearing mandates for swaps referencing the replacement
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