UK Banks Told To Stop Writing Libor Into Derivatives

Law360, London (March 29, 2021, 4:53 PM BST) -- Britain's financial watchdogs told banks on Monday to write an alternative risk-free benchmark rate into new derivatives contracts from May as markets work toward ditching the scandal-hit Libor by the end of the year.

The Financial Conduct Authority and the Bank of England said that they are encouraging banks to reference the Sterling Overnight Index Average, known as Sonia, instead of the London Interbank Offered Rate from May 11.

Libor, which underpins trillions of dollars of contracts, lost favor amid market manipulation scandals. Traders were found to have engineered the rate for their financial gain, and some went to prison. The...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!