Former CFTC Chair Chris Giancarlo and AFX Chairman Richard Sandor on LIBOR issues and STIR benchmark alternatives.
SOFR futures positioning ahead of year-end turn drives record OI. SOFR is a logical replacement for Libor futures after the end of 2021, when regulators have called for its replacement.
SOFR futures volume and open interest increase aided by new participants and continued usage in repo market applications.
Richard Sandor, the CEO of the American Financial Exchange (AFX) sees a more diverse outcome for the interest rate benchmark used to set trillions in global interest rates on everything from mortgages to credit cards. The “father of financial futures” sees a world in which a variety of interest rate benchmarks operate. AFX exchange created a LIBOR alternative, AMERIBOR, which he says better represents US interest rates for regional and community banks and will trade on the CBOE Futures Exchange (CFE).
The Commodity Futures Trading Commission (CFTC) issued an Order today filing and settling charges against Société Générale S.A. (Société Générale or the Bank) for attempted manipulation of and false reporting in connection with the London Interbank Offered Rate (LIBOR) for U.S. Dollar, Yen and Euro, and the Euro Interbank Offered Rate (Euribor), certain instances of manipulation of Yen LIBOR, and aiding and abetting traders at another bank in their attempts to manipulate Euribor.
The rate banks charge each other to borrow dollars for three months fell by the most in nearly four months on Tuesday, following a broad pullback in benchmark bond yields the day before on worry over U.S. President Donald Trump's tough stance on trade.
The U.S. Supreme Court on Tuesday allowed private antitrust lawsuits brought by investors including big U.S. cities accusing major banks of conspiring to manipulate the pivotal Libor benchmark interest rate to move forward.
The rate banks charge each other to borrow dollars for three months rose above 1 % on Wednesday for the first time since May 2009 as global interest rates extend their climb on expectations of accelerating growth and inflation.
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Key short-term interest rates jumped early on Thursday as international markets calmly responded to the U.S. Federal Reserve's first policy tightening in nearly a decade, a welcome sign for the Fed as it prepares for a tricky auction later in the day.