Libor set to remain as benchmark rate for OTC derivative contracts
Legacy issues and the lack of alternative benchmarks mean Libor will remain the default benchmark of choice for OTC transactions
Given the pervasiveness of Libor as a benchmark in over-the-counter derivative transactions, a move to an alternative interest rate benchmark will face significant hurdles, said Robert Pickel, chief executive of the International Swaps and Derivatives Association.
While benchmark rates such as Libor may have originated in funding markets, the role of OTC derivatives and benchmarks in hedging funding exposure has put the use of Libor back in the spotlight given the recent manipulation of the
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