LIBOR Transition Masterclass

Venue :Online Seminars
Host Name :The SEACEN Centre
Date From :29 Jun 2021
Date To :29 Jun 2021

Descriptions


Background

The LIBOR rigging scandal exposed shortly after the 2008 global financial crisis highlighted the need for more transparent and reliable financial benchmarks. Since then, material progress has been achieved internationally towards developing alternative financial benchmarks and embedding them in financial markets.  This includes:
 

- Issuance of LIBOR linked contracts is not permitted post 31 December 2021, with the GBP LIBOR issuance deadline already passed on the 31 March 2021
- EUR, JPY, CHF and GBP LIBORs will cease to be published after 31 December 2021, while most USD LIBOR fixings will be published until 30 June 2023 but for legacy contracts only
- The alternative reference rates proposed (SOFR for USD, SONIA for GBP, etc.) are structurally and economically different from the LIBOR rates they are replacing; therefore, the transition entails financial and risk management implications

 

About the masterclass

This event is a follow on from our previous November 2020  ‘Beyond Libor’ webinar run with OMFIF, which can be found here:

 

The masterclass will be delivered by True North Partners, a UK based consulting firm with deep expertise in LIBOR transition programmes across various jurisdictions. The agenda will address the following topics: 

- Introduction to the LIBOR reform and implications for central banks
- Latest regulatory updates
- Term rate developments and implications
- International conventions for cash and derivative products
- Fallback language developments and considerations
- Implications for banking supervisors and practical steps for implementation
 

Implications for banking Supervisors

The key considerations for Supervisors will also be explored and this includes:

  • Supervisory bodies need to ensure that local financial institutions are operationally and legally prepared to deploy alternative reference rates
  • In addition, local benchmarks may have to be reviewed in order to ensure compliance with the 2013 IOSCO Principles for Financial Benchmarks
  • The ability of a country to participate in the global financial system and to promote financial stability is highly dependent on the appropriate local interpretation and enforcement of such standards and benchmarks
  • Where local Central Banks hold investments/ reserves that are impacted by the transition, such contracts should be migrated to alternative benchmarks, and the economic/risk management impact of such transition needs to be evaluated
  • The transition process entails Conduct and Treat Customers Fairly (TCF) considerations that local supervisors should monitor and enforce

 

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Speaker

Dr. Periklis Thivaios CFA,FRM,BTRM, Partner, IBOR Lead, TNP Partners 

Doctorate in Finance (IE Business School);

MSc in Management, LSE;

BSc Business Administration, Cardiff; CFA; FRM; BTRM