First trade closed with SORA, the replacement for SOR

Singapore

OCBC Bank and Standard Chartered have completed Singapore's first overnight indexed swap derivatives transaction using the Singapore Overnight Rate Average (SORA) as the interest rate benchmark, paving the way for further adoption of the alternative rate.

SORA is the average rate of unsecured overnight interbank SGD transactions brokered in Singapore. Singapore is transitioning from the use of the Sing-dollar Swap Offer Rate (SOR) to SORA over the next two years, as the scandal-tainted London Inter-bank Offered Rate (Libor) is due to meet its end after 2021.