Andrew Hauser: Turbo-charging sterling LIBOR transition: why 2020 is the year for action - and what the Bank of England is doing to help

Speech by Mr Andrew Hauser, Executive Director for Markets of the Bank of England, at the International Swaps and Derivatives Association/SIFMA Asset Management Group Benchmark Strategies Forum, London, 26 February 2020.

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

Introduction

2020 is a critical year for LIBOR transition.

Great progress was made in 2019, particularly in sterling wholesale markets - and I want to give special thanks to the part that ISDA's support and leadership has played in that.

But, with the finish line for LIBOR now clearly in view, there is still a lot of ground to cover - particularly in the cash markets. We need to see another decisive acceleration in effort in 2020 to ensure risk-free rates are adopted across the full range of sterling business, and LIBOR is left behind for good.

The motor racing analogy is apt, because LIBOR transition is complex, fast-paced and - above all - a team effort.