LIBOR – Where Are We Now?

April 04, 2018
Financial Services Quarterly Report: First Quarter 2018

The key take-away from a speech by the Chief Executive of the UK’s Financial Conduct Authority was that, post-2021, the FCA would not compel contributor banks to voluntarily sustain LIBOR. The speech effectively set a 2021 deadline for action on the reference rate, which did not necessarily sound the end of LIBOR but indicated a date by which reform must be made. The speech made clear that, in the absence of actual transactions to form the basis of LIBOR quotations, the benchmark is not sustainable in its current form. The consequences of this development are wide-ranging.

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