SHIR Resource Centre
Israel’s switch from Telbor to SHIR: Are you ready?
Everything you need, all in one place
Here, you’ll find the information to help you prepare for the Shekel Overnight Interest Rate (SHIR) transition from the Tel Aviv Inter-Bank Offered Rate (Telbor). We’ll provide updates, along with best practice and guidance from our experience with market participants, central banks and clearinghouses.
Deep regulatory experience
Our guidance on the SHIR transition is drawn from our extensive experience helping clients navigate regulatory reform and Risk-Free Rate (RFR) transitions across the globe – including F-TIIE, SONIA, ESTR, SOFR, TONA.
Background
The current reference rate for Israel’s $1.4tn shekel-denominated interest rate swaps market, known as Telbor, will transition to SHIR effective 1 July 2025. SHIR began to be published in May 2022.
The decision to replace Telbor is in line with most international industry standards where IBOR interest rates are being replaced with risk-free overnight interest rates.
- Benchmark rates: ILS-SHIR-OIS Compound vs Annual
- The publication of all tenors of Telbor will permanently cease following a final publication on 30 June 2025.
The current reference rate for Israel’s $1.4tn shekel-denominated interest rate swaps market, known as Telbor, will transition to SHIR effective 1 July 2025. SHIR began to be published in May 2022.
The decision to replace Telbor is in line with most international industry standards where IBOR interest rates are being replaced with risk-free overnight interest rates.
- Benchmark rates: ILS-SHIR-OIS Compound vs Annual
- The publication of all tenors of Telbor will permanently cease following a final publication on 30 June 2025.
Reference Rate Switch
Timeline for Transition
Clearing & Settlement
Clearing is currently available for SHIR at central counterparty (CCP). LCH is the only CCP that supports SHIR and is supported via Marketwire.
LCH
- SwapClear will perform the ILS TELBOR conversion in a single event expected to be conducted on Saturday, 17 May 2025, based on the population of Telbor contracts that will be outstanding on EOD Friday, 16 May 2025. The contingency date for the ILS Telbor conversion event is expected to be Saturday, 7 June 2025.
- Prior to the conversion event in production, the conversion process will be tested through a dress rehearsal event to take place in LCH’s Member Test environment expected to be conducted on Saturday, 8 March 2025.
- LCH will not register any Telbor trades after the 17 May 2025 conversion.
Industry Resources
Bank of Israel
- Decision to cease the publication of Telbor after June 30, 2025
- The Telbor interest rate
- Shekel overnight Interest Rate (SHIR)
- Press release: Trading begins in SHIR—Shekel overnight Interest Rate, the interest rate expected to replace the Telbor interest rate
Clearing & Settlement
ISDA
Other Reference Rate Conversions
Awards
