Russia is looking to bolster the market for interest-rate swaps by setting up a new gauge of the fixed rate investors are offering to exchange for floating costs, Bloomberg reports. The National Foreign Exchange Association is launching a fixing for interest-rate swaps in the Ruble Overnight Index Average (Ruonia). It will start publishing the new ROISfix rate from April 15. Bank Rossii rolled out the Ruonia in September as a more transparent indicator of the cost of lending between local banks. The new gauge will show the average of fixed rates offered by nine banks in exchange for floating. Rates for one week, along with two and three-month swaps will be decided each day.
Click here for the story from Bloomberg.