Libor in depth Special report 2019 Risk.net Sponsored by LID_OFC_0919.indd 89 15/08/2019 16:43 Opinion Libor – How seven firms are tackling the transition Lukas Becker Desk Editor, Derivatives
[email protected] t the law firm Fieldfisher’s offices near London Bridge in June, around 75 people gathered in a meeting Joanna Edwards Senior Director, Marketing Solutions A room for a seminar on Libor transition.
[email protected] During the event, the audience of buy- and sell-side executives answered poll questions on their Stuart Willes smartphones. The answers were not encouraging. Commercial Editorial Manager Asked: ‘How prepared are you for Libor discontinuance?’, two-thirds said they were just “starting to think
[email protected] about it”. None had begun moving Libor positions to new risk-free rates (RFRs). Alex Hurrell, Commercial Subeditor Only one-quarter expected to transition all of their exposures away from Libor by the end of 2021, and
[email protected] nearly half predicted they would only be able to get 50–80% of the work done in time. Antony Chambers, Publisher, Risk.net This was a small sample size, and the results should be taken with a pinch of salt. But polls at other industry
[email protected] gatherings also give the impression that, despite clear warnings, Libor may disappear soon after 2021 – at Robert Alexander, Sales Manager which point the UK Financial Conduct Authority (FCA) will no longer compel banks to submit quotes to the
[email protected] various benchmark panels – market participants have done little about it, at least so far.