FCA’s Bailey stresses need for Libor backstop
Chief executive warns firms the end of Libor is not a “black swan” event, but a certainty
Firms need to act now to avoid a “crash” when the Libor rate is discontinued, UK Financial Conduct Authority chief Andrew Bailey warned in a recent speech.
Despite the fact that Libor will be discontinued after 2021, the number of derivatives contracts referencing the benchmark rate continues to grow, Bailey said on July 12. Firms should not treat the switchover as a “a remote probability black swan event”, but rather something that “will happen and which they must prepare for”.
“Fallback
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