BBA reports findings of LIBOR reform consultation
The timetable for ending LIBOR quotes in some currencies and maturities is published today by the British Bankers' Association, following a month-long consultation with market users.
The feedback statement summarises the findings of the consultation and sets out the BBA’s timescale for a phased discontinuation of certain LIBOR rates, in line with the sixth recommendation of the Wheatley Review.
BBA chief executive Anthony Browne said:
"We have said throughout this process that the absolute priority now for everyone is to ensure the provision of a reliable benchmark which has the confidence and support of all users. We are issuing this feedback statement today to allow LIBOR users the maximum amount of time to make contingency plans for these changes. We will be issuing a further, more detailed feedback statement in the New Year."
Martin Wheatley, managing director of the FSA and chief executive-designate of the Financial Conduct Authority, said:
"I welcome the BBA’s steps towards implementing a key recommendation of the Wheatley review of LIBOR through its final proposals on the gradual phasing out of certain currencies and maturities. We note that the BBA has carefully considered the feedback they received from stakeholders to ensure a smooth transition. It’s now up to the industry to make the necessary arrangements to accommodate these changes."
Notes to Editors
1. Read the BBA's feedback statement published today here.
2. Read the consultation paper here.
3. The Wheatley Review of LIBOR and other relevant documents can be found on the HM Treasury website at http://hm-treasury.gov.uk/wheatley_review.htm.
4. The sixth recommendation of the Wheatley Review is:
“The BBA should cease the compilation and publication of LIBOR for those currencies and tenors for which there is insufficient trade data to corroborate submissions, immediately engaging in consultation with users and submitters to plan and implement a phased removal of these rates.”