The FCA has published this morning a suite of documents, in conjunction with the RFR WG and the Bank of England on Libor transition. Find the full press release here containing links to the documents. Key points and observations include:
The RFR WG’s priorities and updated roadmap for 2020 (e.g. including
ceasing the issuance of cash products linked to LIBOR by end-Q3
2020);A joint letter from the Bank of England and FCA to banks and insurers
setting out the initial regulatory expectations of firms’ transition
progress during 2020;A statement from the Bank of England and FCA encouraging market
makers to switch the convention for sterling interest rate swaps
from LIBOR to SONIA on 02 March 2020;A series of documents from the RFR WG including: (a) the RFR WG’s
views on which types of business and client should use overnight
SONIA; (b) ‘lessons learned’ from recent conversions of legacy LIBOR
contracts; and (c) a factsheet on Libor transition and why firms need
to act now.
These publications, along with the update in December, are a comprehensive suite of materials that support of the RFRWG’s priorities and milestones. The time to act is now: with the tools published today and the support of the official sector domestically and internationally, market participants have what they need to leave LIBOR behind.
You can view all the documents produced here, and a full list of whats included is below:
- FCA Press Release 16.01.2020 - Next steps for LIBOR transition in 2020: the time to act is now
- BoE Press Release 16.01.2020 - Next steps for LIBOR transition in 2020: the time to act is now
- £RFRWG Factsheet 16.01.2020 – Calling time on LIBOR: Why you need to act now
- FCA Statement 16.01.2020 – FCA and Bank of England encourage switch from LIBOR to SONIA for sterling interest rate swaps from Spring 2020
- Bank of England and FCA Letter 16.01.2020 – Dear SMF Letter: Next steps on LIBOR transition
- Bank of England Report 16.01.2020 – Transition to sterling risk-free rates from LIBOR
- Bank of England Financial Stability Report 16.01.2020 – Financial Policy Committee Record and stress testing results
- Bank of England Press Release 16.01.2020 – FCA and Bank of England encourage switch from LIBOR to SONIA for sterling interest rate swaps from Spring 2020
- £RFRWG Working paper 16.01.2020 – Use Cases of Benchmark Rates: Compounded in Arrears, Term Rate and Further Alternatives
- £RFRWG Statement 16.01.2020 – Progress on the transition of LIBOR-referencing legacy bonds to SONIA by way of consent solicitation
- £RFRWG Consultation Paper 16.01.2020 – Consultation on credit adjustment spread methodologies for fallbacks in cash products referencing GBP LIBOR
- £RFRWG Roadmap (16.01.2020) - Top level priorities
