Speech by Andrew Bailey, Chief Executive of the FCA, at Bloomberg London.
Highlights
- Andrew Bailey examines important questions about the future of LIBOR.
- While significant improvements have been made to LIBOR since April 2013, the absence of active underlying markets raises a serious question about the sustainability of the LIBOR benchmarks that are based upon these markets.
- Panel bank support to sustain LIBOR until end-2021 will enable a transition that can be planned and executed smoothly.
- Work must begin in earnest on planning the transition to alternative reference rates that are based firmly on transactions.