FCA: loan market shouldn’t wait for forward rates

Development of new term benchmarks is no excuse to delay transition, says Schooling Latter

Financial Conduct Authority

The UK’s Financial Conduct Authority (FCA) is urging loan market participants to stop waiting for forward-looking overnight rates and begin preparations for transition to overnight benchmarks.

The regulator warned that markets are going to “gravitate” towards the overnight rates anyway and there is already ample evidence of this, so it is better to use overnight rates to reduce the risks arising from fragmentation.

“For those thinking – and maybe this is just about convenience rather than

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