London Interbank Offered Rate (LIBOR) has become highly uncertain since the Financial Conduct Authority announced that it would not compel or persuade panel banks to make LIBOR submissions after 2021. The size and scale of this market suggests that there would be significant confusion and market disruption should publication of the benchmark rate be discontinued; a flurry of activity has ensued around the selection of alternative reference rates and the development of a transition plan away from LIBOR.
KPMG’s new Point of View paper, Moving with the change, outlines relevant issues facing both financial services industry and market participants along with key actions that each group might take to facilitate an efficient and effective transition away from LIBOR and toward the new rates. To keep pace with the 2021 timeframe, industry participants and individual firms must immediately begin to embrace and plan for the change.
If you have questions, please contact Mark Twerdok or Christopher Dias.