A surge in the value of financial contracts tied to Singapore’s new lending benchmark shows it is on track in its switch away from the discredited London interbank offered rate.
All new interest-rate derivatives in the city-state will be pegged to the Singapore Overnight Rate Average, or SORA, from Oct. 1 instead of the Libor-based Singapore Swap-Offer Rate (SOR), under a timeline set last year by a steering committee formed by Singapore’s central bank.
Singapore banks are increasingly embracing the new benchmark for derivative transactions, just ahead of the September-end deadline. There were nearly $193 billion of outstanding SORA-linked …
