The $7T Increase in New RFR Positions

> "ISDA-Clarus RFR Adoptions Indicator tracks how much global trading activity (as measured by DV01) is conducted in cleared over the counter (OTC) and exchange traded interest rate derivatives (IRD) that reference the identified risk-free rates (RFRs) in size major currencies."

For nov:

> "We have seen a $7Trn+ increase in the Open Interest of RFRs in JPY and CHF due to CCP[0] conversion processes."

> "73% of JPY risk was versus TONA" (Tokyo Overnight Average Rate (TONAR) is an unsecured interbank overnight interest rate and reference rate for Japanese yen.)[1]

> "62.2% of CHF risk was versus SARON" (SARON stands for Swiss Average Rate Overnight and represents the overnight interest rate of the secured funding market for the Swiss Franc (CHF). (Swiss Average Rate Overnight) is an overnight interest rates average referencing the Swiss Franc CHF. It is based on transactions and quotes posted in the Swiss repo market. SARON is administered by SIX.)[2]

The context behind this is that for almost for over a decade now, large parts of the IRD market have refused to use anything besides LIBOR and have conducted trades outside of CCPs.

[0] https://en.wikipedia.org/wiki/Central_counterparty_clearing

[1] https://en.wikipedia.org/wiki/TONAR

[2] https://en.wikipedia.org/wiki/SARON