The cessation of the London interbank offered rate (Libor) is a global issue but there is a disjointed approach to tackling the problems caused by this event. If not vigilant, market participants may find themselves financially exposed as a result.
Despite Libor’s global reach, it is the UK Financial Conduct Authority (FCA) that is ultimately responsible for bringing about the demise of Libor around the world. In July 2017, Andrew Bailey, then CEO of the FCA, announced that after 2021 the FCA would no longer expect panel banks to submit rates required to calculate Libor, in anticipation of transitioning to an alternative system.
