Internet Banking
Click icon again to close

What are the implications on financial markets of LIBOR phasing out?

Given the quantum of financial products that use LIBOR, its phasing out comes with significant impact on all participants in financial and capital markets globally.

Moving from LIBOR to alternative reference rates (ARRs) is a massive undertaking across capital markets and includes several key elements:


  • new benchmarks must be widely adopted by a variety of participants;
  • technology must be upgraded to process products linked to the new benchmark(s);
  • legal teams must amend trillions of dollars of existing contracts tied to LIBOR; and
  • financial markets must model structural adjustments to integrate the economics of the new rate.