Summary Minutes of Sub-Group and Task Force Meetings – March 2024



Following the cessation of most LIBOR settings at the end of 2021, the Working Group on Sterling Risk-Free Reference Rates (the “Working Group”) concluded at its January meeting that it had met its objective to “catalyse a broad-based transition to SONIA across sterling derivative, loan and bond markets”.

Following this meeting, the Working Group confirmed that all Sub-Groups and Task Forces – except for the Bond Market Sub-Group, Loan Enablers Task Force and Communications and Outreach Sub-Group – would close as the Working Group moves into 2022 in a new form, with new objectives, and with continued support from the Bank of England and FCA.

The new overall objective is to assist in finalising the transition away from LIBOR, via:

  1. Supporting the continued active transition of legacy contracts from synthetic sterling LIBOR to SONIA, and
  2. Considering any implications of non-sterling LIBOR transition in UK markets.

To aid transparency in its new form, the Working Group will publish summaries of the meetings of its Sub-Groups and Task Forces. Please see below for summaries of recent meetings.

The Bond Market Sub-Group (the “BMSG”):

Chair: Paul Richards ICMA

At the BMSG meeting on 5 March, the FCA and Bank of England briefed members on plans for the cessation of 3-month synthetic sterling LIBOR on 28 March 2024 and 1-, 3- and 6-month synthetic US dollar LIBOR on 30 September 2024, following the FCA announcement on 29 February. The main purpose of the meeting was to discuss preparations in the bond market for the cessation of synthetic sterling LIBOR and synthetic US dollar LIBOR ahead of the FCA’s proposed cessation dates and, in particular, to invite BMSG members to communicate any remaining concerns. 

At the meeting, BMSG members confirmed that they are prepared for the cessation of 3-month synthetic sterling LIBOR on 28 March 2024, and that they had addressed any previous concerns. BMSG members also confirmed that they continued to make good progress in their preparations for the cessation of 1-,3- and 6-month synthetic US dollar LIBOR on 30 September 2024, that no new concerns had arisen and that they were addressing any remaining concerns. BMSG members were encouraged to use their own channels of communication to increase market awareness of the forthcoming cessation of synthetic US dollar LIBOR in those areas where awareness might be lacking, such as outside Europe and the US.


Source link

Earn $5,000 A MONTH From Home! Click Here