What Libor reform will change – and what it won’t
The Wheatley Review of Libor succeeds in shoring up the interest rate benchmark without destabilising the derivatives market, traders say. But there are some hidden complexities. By Laurie Carver
For a period of almost three months – from the announcement of a UK government-commissioned review of Libor on July 2, to the publication of the review’s findings on September 28 – the banking industry was on the edge of its seat, and derivatives markets were on the edge of chaos. Switching to a new benchmark – one of the options the review was required to consider – could have triggered legal
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