Synthetic LIBOR confirmation a 'welcome relief'

‘Not a silver bullet’

The Financial Conduct Authority’s confirmation of synthetic LIBOR rates for six sterling and Japanese yen settings has been met with positivity by the industry.

Robin Penfold, partner at TLT, said the decision to permit "broad use" of the synthetic LIBOR rates was a "welcome relief to many across the financial services industry still engaging with the challenges of what to do with ‘tough legacy' contracts" when the current iteration of LIBOR comes to an end this year. FCA confirms use of synthetic LIBOR for six settings with little change to initial proposal Global head of LIBOR transition at Norton Rose Fulbright Davide Barzilai agreed, saying the announcement brought the market "certainty". "This fix has been on the cards for some time b...