The scandal-ridden Libor benchmark will be phased out by the end of 2021, to be replaced with a more reliable system by banks, the Financial Conduct Authority (FCA) and other regulators.
Financial markets will not "complete the journey to transaction-based benchmarks if markets continue to rely on Libor in its current form," FCA chief executive said in a speech at Bloomberg offices on Thursday. Secret recording implicates Bank of England in Libor rigging The benchmark, which underpins more than $350trn of financial products, is not sustainable as as it was no longer "sufficiently active" to determine a reliable rate, according to Bailey (pictured). For example, one currency and lending period amounted to just 15 transactions in 2016. "The absence of active underly...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
