FCA Speech—are you ready for life without LIBOR from end-2021?

Article summary

The Financial Conduct Authority (FCA) has published a speech by the Director of Markets and Wholesale Policy at the FCA, Edwin Schooling Latter, delivered at City & Financial's ‘Managing LIBOR Transition’ event on 26 January 2021. Among other things, Schooling Latter states that: 85% of the uncleared UK derivatives market are ready for the end of LIBOR as 12,500 firms have thus far, signed the International Swaps and Derivatives Association (ISDA) IBOR Fallbacks Protocol; the ICE Benchmark Administration (IBA) consultation on proposed end-dates for LIBOR has now closed, opening the way to determining and announcing the future path for all 5 LIBOR currencies simultaneously; and users of LIBOR should press ahead with transition plans—in their new business and their legacy LIBOR books. Schooling Latter also looks forward to FCA consultations, including consultation proposals in spring 2021 on the framework for FCA powers relating to benchmarks, referred to in the UK’s Financial Services Bill.