ISDA and Clarus publish January 2021 RFR adoption indicator

Article summary

The International Swaps and Derivatives Association (ISDA) and Clarus have published the January 2021 edition of their risk-free rates (RFR) adoption indicator. This indicator tracks how much global trading activity is conducted in cleared over-the-counter and exchange-traded interest rate derivatives (IRD) that reference the identified RFRs in six major currencies, and was 10% in January 2021, flat compared to December 2020. On a traded notional basis, the percentage of RFR-linked IRD accounted for 11.8% of total IRD in December 2020, down from 13.3% the prior month.