Financial Times: Financial Players Need To Find A Coordinated Approach In The Face Of The LIBOR Transition

The Financial Times reported on the consequences of the LIBOR transition, highlighting a warning from the UK financial authorities – that banks and insurers must be ready.

With about $170tn of derivative contracts depending on the benchmark rate, traders and bankers are increasingly aware of the risks and potential impact, though some remain unprepared.

Financial authorities have pushed for a more coordinated approach, demanding that plans are board-approved, and that each institution names the senior manager responsible for overseeing it.

Serge Gwynne, Partner, Corporate and Institutional Banking at Oliver Wyman, said that financial authorities are keen to avoid regulation in favour of a “market-led” solution. However, “there’s a risk LIBOR doesn’t get the priority it should do, not least because of Brexit preparations,” he said.

Read the full article here.