ACT Treasury Network Scotland 2019 | Association of Corporate Treasurers | 8 October 2019 | Deloitte LLP, 5th Floor, 110 Queen St, Glasgow G1 3BX, UK

Regulators globally have signalled clearly that firms should transition away from Interbank Offered Rates (IBORs) to alternative overnight risk-free rates (RFRs).

The London Interbank Offered Rate (LIBOR) underpins contracts affecting banks, asset managers, insurers and corporates estimated at $350 trillion globally on a gross notional basis. This figure underscores the extent to which market participants rely on LIBOR and demonstrates that a sudden and disorderly discontinuation of the rate could give rise to systemic risk. The rate is so embedded in the day-to-day activities of providers and users of financial services, both unregulated and regulated, that even identifying a firm’s exposures to it – which is just one element of what is needed to transition from it successfully – is a highly complex task. Against this background, many market participants have already embarked on transition programmes, but, as some regulators have pointed out, the pace of transition is not yet fast enough. This in part is because of the absence of any formal regulatory or legal mandate. It is vital that Boards take action now to avoid reputational, legal and commercial risk later.

Given the degree of uncertainty and complexity, LIBOR transition is likely to be one of the (if not the) biggest transformation programmes many firms have undertaken. During this seminar, our speakers will discuss the latest market developments and try to clarify the key issues and potential critical planning activities required as we move towards the LIBOR phase-out anticipated by 2021.

2019 Speakers

Alex Armstrong
Director, Treasury Services, Deloitte

John Maciver
Partner, Pinsent Masons LLP

Rachel Coleman
Solicitor, Pinsent Masons LLP