Andrew Hauser: Join the revolution! Why it makes business sense to move on from LIBOR

Speech by Mr Andrew Hauser, Executive Director for Markets of the Bank of England, at Risk Live, London , 27 June 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

There seem to be two rather distinct themes to your conference today:

The first is all about opportunity, the future, things you might want to do: fintech, AI, new tools and ways of working. All symbolised by a rather inspiring yellow lightbulb icon on your agenda:

The second is all about the grim stuff: black swans, operational risks, or whatever else might lurk in your 'hall of horrors' sessions later - and the things you have to do in response.

I'm not 100% sure which camp this speech has been put in. But I think there's a clue in the icon you've put next to my name in the programme - which is a revolutionary clenched fist-

In one sense I understand why I've been given a pugnacious icon. The programme to move the market from LIBOR to risk-free rates is a huge undertaking. Its goal is vital, and simply stated: to eliminate the profound system-wide vulnerabilities posed by LIBOR. And the deadline is clear: end-2021. But delivering it is as complex a task as any the financial sector has faced over the past decade, involving a global network of market participants and public authorities, and touching most systems, products and markets in some way.