News
Business update
TraditionData Appoints Jake Harmon as Regional Head of Product, U.S.
By TraditionData
24 Apr 2025
Credit & Fixed Income
Tracking the SOFR–Treasury spread with TraditionData: a barometer for investor risk appetite
By Akshay Gupta
23 Apr 2025
Interest Rate Derivatives
Interest Rates & FX updates: April 2025
By Jessica Kalaria
16 Apr 2025
When markets move fast, accurate data matters: stay ahead with TraditionData
By Saracen Fletcher
11 Apr 2025
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The transition from LIBOR to alternative reference rates is a crucial step in the evolution of the financial markets, with the new rates providing increased transparency, robustness, and reliability. Financial services professionals will benefit from a more accurate representation of the cost of borrowing, making their decisions and risk management strategies more informed and effective.
Several alternative reference rates have been developed and are being implemented globally. These include the Secured Overnight Financing Rate (SOFR) in the US, the Sterling Overnight Index Average (SONIA) in the UK, and the Hong Kong Overnight Index Average (HONIA) in Hong Kong, among others. Each of these rates reflects the cost of borrowing in a more accurate and reliable way, providing a more robust foundation for the financial markets.
The transition from LIBOR to alternative reference rates is a significant change in the financial markets, and financial services professionals will need to adapt to these changes. However, this transition will bring several benefits, including increased transparency, better representation of the cost of borrowing, and reduced potential for manipulation. The transition to alternative reference rates will ensure the long-term stability and robustness of the financial markets, making it an important step forward.
Setting interest rates for loans, bonds and other financial products
Determining the value of financial derivatives such as swaps and futures contracts
Assessing credit risk in the financial market
Pricing financial products and making investment decisions
Facilitating risk management strategies in the financial markets.
Insight
The importance of high-quality OTC data in navigating inflationary uncertainty
By Ian Sams
9 Oct 2023
Tradition appointments to the CFTC Global Markets Advisory Committee (GMAC) & associated Subcommittees
27 Jul 2023
Data insights key for financial players to capitalise on SORA
27 Jun 2023
Rates market turmoil boosts demand for modelled LIBOR alternatives
17 May 2023