Australian financial regulators have put financial institutions on notice that they must stop using the London interbank offered rate as a reference rate in new contracts before the end of 2021.
At the end of the year, the IBA will cease publishing Sterling Libor as a representative rate with corporates will need to transition to RFRs like Sonia
ASIC - LIBOR Transition In The Asia Pacific Region: Time Is Running Out Date
27/05/2021
Nathan Bourne, ASIC’s Senior Executive Leader, Markets Infrastructure, recently spoke about the London Inter-Bank Offered Rate (LIBOR) transition at a webinar hosted by Bloomberg Professional Services and the International Capital Market Association (ICMA) to launch their Guide to Tough Legacy Bonds in Asia Pacific.
The webinar examined the current state of play in relation to so-called ‘tough legacy’ issues in bond markets in the Asia Pacific region.
ASIC considers LIBOR transition to be a significant priority. To ensure a smooth changeover after 31 December 2021, it’s vital that firms and regulators alike continue to prioritise this important work.