Interbank Offered Rates (IBORs) have been on the international regulatory agenda since 2008 and headlined since 2012, when the first high-profile LIBOR manipulation settlements were agreed. These systemically important benchmarks, underpinning a market of over $370tn, were proven to be vulnerable to manipulation.
In July 2017, the FCA announced that it would no longer persuade or compel banks to make LIBOR submissions from the end of 2021 and, along with international regulators, urged market participants to transition to alternative reference rates – all of which have now been selected for the relevant currencies. In July 2018, both the FCA and CFTC were unequivocal in reemphasising the urgency to progress the transition and the inevitability of the discontinuation date.
The purpose of this microsite is to provide an information hub for firms affected by the transition, with a centralised library of relevant documents from regulatory and industry bodies, as well as regular insight and updates on the challenges that face the market.
Our in-depth understanding of capital markets and direct experience leading the implementation of market infrastructure regulations for the world’s largest financial institutions make us your ideal partner for IBOR Transition.
– Initiation and structuring of the programme, including definition of governance and articulation of overall delivery strategy
– Determination of programme scope and key programme dependencies
– Establishment of programme workstream structure, deliverables and supporting resourcing and cost estimates
– Assessment of economic impacts arising from the adoption of ARRs to inform client transition approach, risk mitigation strategy and overall transition timetable
– Assessment of operational impacts across all functions to determine scope of change across data sources, systems, models, processes and controls
– Development of detailed client / product transition plans aligned to jurisdictional adoption
– Define client outreach and communication strategy
– Define internal knowledge and education programmes
– Implementation of all required changes to pricing and risk models, back testing and model validation processes
– Co-ordination and management of all transition activity including contract re-negotiation and execution of client communication
– Adaptation of all internal policies and embedding of business processes referencing ARRs
– Tracking and reporting or transition activity to senior management, external stakeholders, rating agencies and regulators
– Deployment of specialists teams and SMEs to support all key stages of IBOR transition
– Deployment of programme management change resources to support with planning,
– Secondment of SMEs to support management of demand within BAU functions arising from IBOR transition activity