The European Association of CCP Clearing Houses (EACH) has today published a Note detailing the timelines for previous transitions to risk-free rates. This paper aims to consider the different stages involved in an orderly transition from *IBORs towards risk-free rates given the experience accumulated in previous transitions. This should hopefully contribute to ensuring realistic timelines in future transition roadmaps towards risk-free rates. More specifically, the Note:
- Indicates the approximate time taken towards the transition to risk-free rates in different currency areas;
- Describes the various stages to be considered in the transition to risk-free rates;
- Examines in detail the transition in the Swiss market from TOIS to SARON.
Moreover, EACH Members very much welcome international efforts in the transition towards risk-free rates and strongly urge authorities contemplating the start of the journey to take into account all the stages identified in this document and to place an emphasis on orderliness and market adoption, rather than speed, to maximise the likelihood of a smooth and successful transition.
For more information, please click here or visit the ESMA website at www.eachccp.eu
