FCA: Libor contract changes shouldn’t trigger margin rules

Moving from Libor to an RFR shouldn’t force margin requirement on legacy non-cleared trades, says UK regulator

London skyline at sunset

Legacy swap contracts shifting from Libor to a new reference rate will not fall into scope of new margining requirements, the UK’s financial regulator has indicated, bringing relief to dealers that feared an unwelcome hike in costs.

With Libor set to wind down after 2021, regulators and market participants are examining ways to transition existing Libor-referencing swaps to instead refer to other risk-free rates (RFRs) such as Sonia and the new US secured overnight financing rate.

Concerns had

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here