Capitolis has announced today that it has successfully completed the course of multilateral exercises for the transition of Legacy USD Libor, referring to SOFR vanilla replacements for 17 world representatives.
Through nine live performances, Capitolis and Capitalab before its acquisition by Capitolis last year, it facilitated the multilateral change of over 17,000 Libor Swaptrations inheritance across their network of delegates. As a result, participants have eliminated the significant operational burden of closing management associated with Libor Swapations.
Issues with the pricing of Legacy USD Libor Swapations were first protruded in 2020, when large clearances were transferred from Fed funds to SOFR discounts for USD exchanges. This has led to the branching of the US dollar exchange market, introducing complexity and increased time requirements for rates volatility offices. More recently, a significant clearance has ceased to support the liquidation of Libor Swapations inheritance on June 30, 2025, further increasing the operational complexity for market participants.
In response to customers’ concerns about the rest of the Swapping Libor census, Capitalab (now Capitolis) has worked closely with the community of representatives to design and deliver a scalable solution. Within just two months, a proof route began with nine delegates. Since then, nine successful multilateral routes have been completed, collectively turning more than 17,000 transactions. Participants are now left with a cleaner, simpler vanilla book SOFR Swapations, significantly reducing complexity and continuous functional risk.
“This initiative demonstrates the power of cooperation throughout the industry and the power of innovation to solve real world problems,” said Gavin Jackson, co-head of portfolio optimization, Capitolis. “The successful transition of such a large volume of transactions reflects the confidence that our customers place in the capital as well as their commitment to move forward and the willingness to work with us to achieve it.
Most market participants now have few Libor parameters. Capitolis is ready to perform ad-hoc cycles based on additional demand.