Hopes rise of ISDA recognition for index behind new OIS market

09 May 2013

An overnight index swap market that references secured funding rates across the eurozone — similar to a US market that was launched in July 2012 — could soon be a reality, with work well underway to have the index underlying the potential market recognised by the International Swaps and Derivatives Association (ISDA).

The RepoFunds Rate — based on repo trades executed on the BrokerTec and MTS platforms and calculated by Icap Information Services — was launched in December.

However, recent scrutiny over other benchmark rates, following last year’s Libor fixing revelations, has caused headaches.

“Given the heightened focus on indices — ...

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