Derivatives Market Stalking Libor Turns Heads With Volume Surge – Bloomberg Law

Feb. 2, 2022, 5:17 PM

The effort to eradicate U.S. dollar Libor is showing results in the derivatives market, where trading volume in options on the main successor rate surged to a record Tuesday.

According to CME Group Inc., which lists the derivatives, 89,700 options on three-month futures referencing the Secured Overnight Financing Rate changed hands Feb. 1. While that still pales in comparison to CME’s options on Libor-settled eurodollar futures, it was more than half the volume for the month of January of about 163,000. The momentum ebbed Wednesday, with volume of about 14,000 at around noon in New York.

The transition to futures …