More clarity has now been provided on how and exactly when the London Interbank Offered Rate (LIBOR) will cease to be published or no longer be representative. Regulators globally continue to deliver a strong message about transitioning away from LIBOR in new business as soon as practicable or by the end of 2021 at the latest. Key industry milestones in support of this transition have passed or are fast approaching.
Many financial markets currently rely on LIBOR as a basis for pricing and valuation of assets, trading positions, loans and other financial transactions, with LIBOR deeply ingrained in many processes and contracts. This is particularly true of the derivatives space, and with that at the forefront David Cahill of our Regulatory Solutions team facilitated a discussion with Pete Connor, Head of OTC Structured Products, Hedge Fund Services and Mick Berry, Senior Vice President, Derivatives Product Manager on the derivatives implications of LIBOR Transition.