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Libor Alternative Is Winning Over Derivatives Traders – The Wall Street Journal

Efforts to replace the troubled London interbank offered rate are showing signs of progress.

Trading in derivatives tied to Wall Street’s preferred alternative, the Secured Overnight Financing Rate, surged 78% in August, according to TD Securities. The increase comes ahead of a year-end deadline to phase out Libor, which helps set interest costs on trillions of dollars in financial products but was marked for scrap several years ago after a manipulation scandal.