The FCA has published a new webpage entitled ‘finalising LIBOR transition – achievements in sterling markets and what remains to be done‘.
The FCA identifies that the final publication of sterling markets on 31 December 2021 suffered minimal disruption. In addition, LIBOR-referencing contracts in excess of £13 trillion converted to SONIA during that month, with the Bank of England estimating that less than 2% of the total sterling LIBOR legacy stock remains.
In terms of next steps, the FCA, Bank of England and Working Group are encouraging firms to continue to transition legacy sterling LIBOR contracts currently using temporary synthetic LIBOR, the availability of which is not guaranteed beyond end-2022. Having met its objective to ‘catalyse a broad-based transition to SONIA across sterling derivative, loan and bond markets’, the Working Group will form new objectives going forward, with continued support from both the Bank of England and FCA.