20 years: Interest rate benchmarks
In this video, John briefs about the expectations of regulators to the end of 2021 and then explains what is happening between now and the end of 2021 for the LIBOR equivalents in other currencies.
In this video, John briefs about the expectations of regulators to the end of 2021 and then explains what is happening between now and the end of 2021 for the LIBOR equivalents in other currencies.
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9 mins 23 secs
The FCA has stated that the contribution banks have agreed to continue providing inputs until the end of 2021, but may not continue to do so. LIBOR exists only because a set of contributor banks agrees to contribute data on a daily basis. This is risky because, over the last decade, banks have been fined billions of dollars for exploiting or violating the benchmark submission process.
Key learning objectives:
Understand what regulators expect by the end of 2021
Describe the tough legacy contracts
Understand what is happening between now and the end of 2021 for the LIBOR equivalents in other currencies
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The concept was introduced by the FCA and other regulators. These are contracts which genuinely have no realistic ability to be renegotiated or amended to transition to an alternative benchmark.
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