<ul><li>A group of Indian lenders has asked the central bank to approve a new benchmark for overnight indexed swaps, according to people familiar with the matter.</li><li>The banks propose switching from the prevailing Mumbai Interbank Outright Rate (MIBOR) to the newly-proposed Secured Overnight Rupee Rate (SORR) to improve price discovery in the interest-rate swap market.</li><li>The move would offer banks two benchmarks for overnight derivatives, giving them the choice of which reference rate to use.</li><li>The SORR is based on repurchase agreements, which have significantly higher volumes compared to uncollateralized transactions used for MIBOR.</li></ul>

Indian Banks Lobby RBI To Approve New Benchmark For Swaps Market

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