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OSTTRA Launches New Service for Cross-Currency Swap Conversions

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OSTTRA, the global post-trade solutions provider, has successfully carried out the first cross-currency swap conversions of USD/SGD swaps from SOR to SORA. This development is a part of OSTTRA’s ongoing efforts since 2021 to assist market participants in transitioning from legacy Libor benchmarks to new risk-free rates (RFRs). The conversion process generates overlay transactions, which are submitted for clearing to minimise risk and present value (PV) impact.

The first multilateral conversion involved eleven market participants, while a second run involved twenty-one participants. OSTTRA now plans to expand the service to cover other indices subject to cessation, such as MXN, PLN, ZAR and CAD. The new service is facilitated by OSTTRA’s triReduce and triBalance, with CCP connectivity provided via OSTTRA MarkitWire.

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