It has been nearly a year since FCA CEO Andrew Bailey’s speech on the ‘Future of LIBOR’ alerted markets to the viability of the world’s most widely-used benchmark. In that time, supervisors, administrators, global standard-setting bodies, industry organisations, and market participants have struggled to gauge the level of effort required to plan for transition. In the absence of a coordinated strategy, financial institutions and corporates alike have been forced to parse mixed messages on the degree of urgency. In the following paragraphs, the inputs from regulators and working groups give more clarity and direction.
Within a four-day period, the FCA, Financial Stability Board (FSB), International Swaps and Derivatives Association, Inc. (ISDA) and the Sterling RFR Working Group made a series of important public statements significantly advancing the roadmap to transition away from LIBOR by end-2021 giving market participants more clarity and direction.
In our latest publication we explore the outputs of those statements and suggested next steps for Corporate Treasury departments.