U.K. ‘Blazing Trail’ in Libor Shift for Global Derivatives

  • Trade pegged to Sonia stood at 46% in Febuary, outpacing SOFR
  • Rate shows users ‘take comfort’ in Libor replacement: Goldman
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A clear leader is emerging in the migration away from Libor for the vast global derivatives industry.

Trading activity pegged to the U.K.’s Libor replacement stood at 46% in February with the remainder linked to the discredited benchmark, according to the latest data from the International Swaps and Derivatives Association. That compares with just 3.5% pegged to new reference rates for the Japanese yen, and about 5% for those on the U.S. dollar -- markets that are worth more than $200 trillion collectively.