Topic: Benchmarks

“Regulatory patchwork”: major banks face market manipulation suit

New Mexico’s sovereign wealth fund has accused subsidiaries of several of the world’s largest banks of taking advantage of a “patchwork of regulatory oversight” to manipulate the benchmark prices that value certain financial contracts at settlement.

08 July 2021

FCA proposing extended Libor for sterling and yen settings

The UK’s Financial Conduct Authority has proposed allowing the use of some yen and sterling-denominated Libor interest rates beyond the 31 December cut-off, but is warning market participants not wait for a “potential synthetic solution”.

28 June 2021

ISDA consults on Libor swap rate fallbacks, SEC chair Gensler warns against Bloomberg alternative

The International Swaps and Derivatives Association has asked market participants to provide feedback on fallback frameworks for US dollar and sterling Libor swap rates, while SEC chair Gary Gensler warned firms against switching to Bloomberg’s BSBY rate as a replacement due to “a heck of an economic incentive to manipulate it”.

14 June 2021

OCBC bondholders consent to £250 million Libor switch

Singapore’s OCBC Bank, advised by Linklaters, has won approval from bondholders to switch the benchmark underpinning millions of pounds in covered bonds from Libor to a new risk-free rate.

10 June 2021

“Days not weeks”: CFTC and Fed groups back accelerated Libor departure

The United States’ Commodity Futures Trading Commission’s benchmark reform committee has called for a swifter move away from Libor in interdealer swap trades, to speed up the production of a term rate for its replacement benchmark.

09 June 2021

FCA sets out its “tough legacy” plans

The UK’s Financial Conduct Authority has announced what factors it plans to consider when permitting so-called “tough legacy” contracts to continue using a synthetic Libor – but practitioners have labelled the update “disappointing” for not defining what contracts the regulator will count as “tough legacy”.

28 May 2021

Shariah standard-setter warns of Ibor transition risks

The International Islamic Financial Market has detailed how the global transition away from interbank offered rates (Ibors) to risk-free rates could lead to some contracts falling out of shariah compliance.

01 April 2021

Euroyen Tibor administrator proposes 2024 end-date

The administrator of Japanese benchmark Tibor has proposed halting publication of the benchmark for offshore yen deposits in 2024, while UK regulators have instructed local firms to stop including Libor in new derivatives contracts.

30 March 2021

FCA pulls the Libor trigger

The UK’s Financial Conduct Authority has made its widely-anticipated announcement of Libor’s cessation dates, while keeping open the prospect of a temporary “synthetic” Libor for so-called “tough legacy” contracts.

05 March 2021

Baker McKenzie advising on Swiss Libor switch documentation

The working group preparing for the discontinuation of Swiss franc Libor has published its standardised amendment agreement for the switch, drafted by a team from Baker McKenzie’s Zurich office.

04 February 2021

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