Global banks are about to get a comprehensive blueprint for how derivatives worth several hundred trillion dollars may be finally disentangled from the London Interbank Offered Rate.
Clearing houses are preparing a synchronized shift of about 13 trillion euros ($15 trillion) of interest-rate swaps to the new euro short-term rate, ESTR, next month. The process is a critical step toward retiring the Euro Overnight Index Average, part of the bedrock of Europe’s financial system.
