UK: FCA chief sets deadline for LIBOR replacement

The chief executive of the UK’s Financial Conduct Authority, Andrew Bailey, spoke on Thursday at an event in London saying that the currency exchange benchmark LIBOR will be replaced by the end of 2021.

He said, “By having a date by which transition will need to be complete, however, we give market participants a schedule to plan to, and make it easier for them to engage as many counterparties and Libor users as is practicably possible.”

He further spoke of needing new benchmarks by saying, “In our view it is not only potentially unsustainable, but also undesirable, for market participants to rely indefinitely on reference rates that do not have active underlying markets to support them.”

Both the US Federal Reserve bank and the European Central Bank have said that they are developing their own benchmarks to use in place of LIBOR.

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