Clarus Financial Technology

1 week ago | clarusft.com | Chris Barnes

Swap Spreads, aka Spreadovers, have seen record amounts of activity in the past week. The move in prices has been large, with long-dated swap spreads generally heading more negative. Swap Spreads are 4.5-7 basis points more negative and trading in all time record volumes. (FT Alphaville came up with the “apocolypse/swapscalypse” first. I am not that clever). As the link to Alphaville shows, the market narrative is adding USD swap spreads to the “people are worried about the basis trade” theme.

2 weeks ago | clarusft.com | Chris Barnes

With Average Daily Volumes of $10bn in 2025, trading 200 times per day, KRW swaps are the 14th largest market (outside of the G6 major currencies). The swaps market is split across onshore and offshore products, with up to 95% of volumes cleared in 2025. The offshore market, settled in USD, appears to be much larger than the onshore market, with both LCH SwapClear (for clearing) and Tradeweb (for execution) major players.

3 weeks ago | clarusft.com | Chris Barnes

We design a Liberation Index to track market expectations of tariffs. Based on FX Options trade activity, it looks at USDCAD, USDMXN, USDCNY and EURUSD markets. It is a novel way to use transparency data. Today is meant to be Trump’s so-called “Liberation Day” with tariffs potentially being activated with some of the largest trading partners of the US. It is surely no coincidence that it is happening on April Fool’s Day. Just for the sake of it, I wondered what a “Liberation Index” might look like.

1 month ago | clarusft.com | Chris Barnes

Over 50% of risk in USD OIS is now subject to trade-level reporting. Up to 87% of risk in standardised maturities like 10Y is reported within a couple of minutes of trading. The level of transparency in OTC Rates markets is now comparable to other asset classes, including equities trading.

1 month ago | clarusft.com | Chris Barnes

CNY Swaps are now the largest interest rate swap market outside of the “G6” currencies. Clearing is split between Shanghai Clearing (onshore) and LCH SwapClear (offshore). 90% of the offshore market has been cleared so far in 2025, likely influenced by upcoming Uncleared Margin Rules. SEF trading has increased dramatically in the past three years, with Tradeweb ADVs (Average Daily Volumes) approaching $4bn.