"What happens after LIBOR? The impact on legacy instruments"

Marc Gottridge is a New York-based partner and head of the U.S. Financial Services Litigation practice at global law firm Hogan Lovells. Ashley Hutto-Schultz is a senior associate in the Washington office of Hogan Lovells.

On July 27, 2017, the UK’s Financial Conduct Authority (FCA), which has regulated the London Interbank Offered Rate (LIBOR) since 2013, announced that after 2021 it would neither compel nor try to persuade contributor banks to make LIBOR submissions. Although those banks are free to continue to sustain the world’s most widely used benchmark rate voluntarily, without the FCA’s imprimatur, most observers believe that they are unlikely to do so. Central banks and industry groups have already done substantial work developing alternatives to LIBOR. So it is safe to assume that in little more than four years, LIBOR will cease to be published. It is not too early to consider what that will mean for participants in financial markets, including financial institutions, commercial parties, and consumers.

If you would like additional information on this topic or, to request a CLE on this subject matter, please contact Marc Gottridge.

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