Compliance Monitor
FCA formalises ‘synthetic LIBOR’ plan to avoid disruption for markets and consumers
By Neasa MacErlean
The regulator has set out
detailed plans to create a staging post along the transition out of LIBOR — by allowing the use of ‘synthetic’ sterling and yen LIBOR rates
in all legacy LIBOR contracts that have not transitioned before 31 December this year. Cleared derivatives contracts are excluded
from these provisions, however.