CIMB, StanChart complete first MYR Klibor - USD SOFR cross currency basis swap

  • Banking
  • Thursday, 17 Sep 2020

KUALA LUMPUR: CIMB Bank and Standard Chartered Bank Malaysia have jointly completed the first MYR KLIBOR - USD Secured Overnight Financing Rate (SOFR) cross currency basis swap transaction with a USD100 million trade.

Standard Chartered’s financial markets (ASEAN excluding Singapore) head Sylvia Wong said being another first ringgit cross currency swap referencing USD SOFR, the bank continues its pioneering efforts in the Asian cross-currency derivatives markets.

"Standard Chartered had previously concluded the first CNY cross currency swap referencing the CNY repo rate and the USD SOFR and the first SGD Singapore Overnight Rate Average (SORA) - USD SOFR cross currency swap in the region.

"We are extremely pleased to extend Standard Chartered’s global commitment towards working with financial markets participants and clients in navigating the global benchmark reforms,” she said in a statement, today.

The successful conclusion of the transaction also coincides with the Malaysian Financial Markets event to be held on Sept 18, the Malaysia Interbank Offered Rate (IBOR) Transition.

"A liquid interest rate derivatives market that adopts new globally accepted reference rates is crucial to allow Malaysian institutions to hedge effectively and efficiently. We will continue to contribute to this development by leveraging on Standard Chartered’s rich global experience,” she said.

Meanwhile, CIMB Group treasurer Chu Kok Wei said CIMB Bank had also concluded its first local interbank USD SOFR interest rates swap that is centrally cleared through London Clearing House (LCH).

"With our extensive ASEAN footprint and our deep involvement in the development of the respective local financial markets, CIMB is well positioned to contribute towards the local market development agenda," he added. - Bernama

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