August 15th, 2017, 7:57 am
FYI, conversation with ICE:
ICE:
"Dear ,
ICE Benchmark Administration (IBA) welcomes Andrew Bailey’s comments on 27 July, which will help to ensure the transition to our evolved LIBOR. Users want an IOSCO-compliant, trusted rate, that is available every day for the entire curve. IBA is actively working on evolving LIBOR so that it is based on banks broad wholesale funding and minimises the use of subjective judgement unless necessary - to ensure that the rate can continue to be calculated even in the most extreme market conditions where transactions might not be available.
Having consulted with regulators and over 1000 market participants, we believe that the evolved LIBOR has a long term sustainable future that will continue beyond 2021.
For reference, here is the original speech by Andrew Bailey of the FCA: https://secure.ice/?https://www.fca.org ... e-of-libor
Kind regards,"
Me:
"
Thanks for your reply .
I can be a little slow on the uptake sometimes, so please make allowances!
So your expectation is that (despite Mr Bailey suggesting that alternatives to Libor will be needed) ICE / IBA will continue to produce a Libor rate, suitable for basing ICE derivative products on, past 2021. And on this basis, you would not expect to be retiring Libor based derivative products?
Thanks again for your help,"
ICE:
"
Hi ,
I can only speak on behalf of ICE Benchmark Administration and we fully expect to continue to produce LIBOR beyond 2021. However as long as LIBOR is being produced and remains relevant, then I would expect exchanges to continue to offer derivatives products based on LIBOR.
Kind regards,"