The SC-STS has updated the SORA Market Compendium. With the deadlines for the cessation of use of SOR for new loans, securities and derivatives having passed, this update provides market participants with a snapshot and market insights on the SOR to SORA Transition to date as well as current and expected volumes, liquidity and trends.
The update is a useful commentary on the various conventions (such as lookback with versus without observation shift; the CCR versus NCCR approach; Credit Spread Adjustment, interest rate floors) available and developing in the Singapore market. It also discusses the global trends on such conventions and provides guidance for parties considering the various options.
Detailed drafting guidance for bilateral and syndicated corporate loans, designed for use with the LMA Recommended Form of Facility Agreement incorporating rate switch provisions have been included – these cover the Compounded Rate Terms (for Singapore dollars), relevant amendments to adapt the LMA Recommended Form for the use of SORA, formulae for the various options of CCR and NCCR (each with and without observation shift).
Here are links to the updated and blacklined versions showing the changes.
- Update to the SORA Market Compendium – Transition from SOR to SORA (updated on 17 November 2021)
- Blacklined version showing changes
You may also be interested in our previous blogs:
- SC-STS Publishes recommendations and updated timelines for transition to SORA
- ARRC formally recommends Term SOFR