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ARTICLE · 17 APRIL 2019

The Transition From LIBOR To Risk-Free Rates - An Overview Of Recent Developments

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In our December 2017 article What now for LIBOR in finance documents?, we considered the initial reaction of regulators, industry bodies and market participants to the prospect that LIBOR might no longer exist after 2021.

United KingdomFinance and Banking

In our December 2017 article What now for LIBOR in finance documents?, we considered the initial reaction of regulators, industry bodies and market participants to the prospect that LIBOR might no longer exist after 2021. This note summarises the key developments since then.

IS IT ANY CLEARER WHEN OR IF LIBOR WILL DISAPPEAR?

In a speech on 21 February 2019, Megan Butler of the FCA commented that "in two years the production of LIBOR is likely to end". Not everyone sees this as inevitable. In December 2018, ICE Benchmark Administration Limited (IBA), LIBOR's administrator, launched a survey on the continued use of LIBOR, stating that "the results of the survey will be used to inform IBA's work in seeking the support of globally active banks for the publication of certain LIBOR settings after year-end 2021." However, regulators have been consistent in urging businesses to prepare for LIBOR to disappear after 2021.

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