The scandal-ridden Libor benchmark will be phased out by the end of 2021, to be replaced with a more reliable system by banks, the Financial Conduct Authority (FCA) and other regulators.
Financial markets will not "complete the journey to transaction-based benchmarks if markets continue to rely on Libor in its current form," FCA chief executive Andrew Bailey said in a speech at Bloomberg's London offices on Thursday. The benchmark, which underpins more than $350trn (£266 trillion) of financial products, is not sustainable as as it was no longer "sufficiently active" to determine a reliable rate, according to Bailey (pictured). For example, one currency and lending period amounted to just 15 transactions in 2016. Secret recording implicates Bank of England in Libor rig...
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