In March, the FCA announced the dates that panel bank submissions for all LIBOR settings will cease. You can read our briefing note on this here.
July marks six months until the end of LIBOR. Earlier this week, Edwin Schooling Latter, Director of Markets and Wholesale Policy at the FCA gave a speech on the transition away from LIBOR. He commented on the challenges faced as the financial markets prepare for a world without LIBOR and on how these challenges have been overcome, with liquidity successfully moving from LIBOR to SONIA.
The next focus will be for the LIBOR Panels to ensure that all legacy contracts that can be converted are converted before the end of the year. It is also worth noting that Parliament gave the FCA new powers to help maintain continuity of those legacy LIBOR contracts that cannot be converted.
While there are still six months to go, the FCA is encouraging the conversion of legacy contracts, where possible, in the next few months (so as to avoid a rush in the lead up to the deadline). As a reminder, the LIBOR settings that will permanently cease immediately after 31 December 2021 are:
The FCA is confident that the result of the transition will make financial markets stronger.
If you have any questions on these changes, or would like further information, please contact: