BoE, FCA, and PRA update on next steps in LIBOR transition
Regulatory Updates | 16/01/20
The Financial Conduct Authority (FCA), Bank of England (BoE), and the Prudential Regulation Authority (PRA)’s industry-led Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published documents outlining priorities and milestones for LIBOR transition in 2020.
The RFRWG has published its priorities and milestones for 2020, and clarified steps that market participants should take to reduce their exposure to LIBOR and transition to alternative rates.
The PRA and the FCA have published two documents designed to further encourage change: a joint letter to major banks and insurers in the UK setting out the FCA and PRA’s expectations of the firms’ transition progress during the year; and a statement from the BoE and the FCA encouraging market makers to switch the convention for sterling interest rate swaps to SONIA on 2 March 2020.