Market will welcome FCA’s proposals on LIBOR

James Lewis, UK LIBOR Lead, KPMG, SAYS: “Over four years after the end of LIBOR was first announced, today the regulator proposes the use of a synthetic LIBOR for many legacy Sterling and Yen products, bar cleared derivatives, from January 2022. This will provide a much needed safety net for users with LIBOR contracts and will be a relief to many market participants. However, whilst the regulator’s proposals acknowledge the difficultly, complexity and scale of the LIBOR transition, the extension is not indefinite and so the pressure on firms to move away from LIBOR remains.”

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*See the FCA press release here: Further arrangements for the orderly wind-down of LIBOR at end-2021 | FCA

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