Featured Product

    FCA Consults on Winding Down LIBOR, Issues Data Strategy Update

    June 30, 2022

    The Financial Conduct Authority (FCA) is seeking views on winding down the one-, three- and six-month synthetic sterling LIBOR settings, along with the information on market participants’ exposure to USD LIBOR. The feedback period to this consultation ends on August 24, 2022. Moreover FCA published a summary of the CryptoSprint events it held in May and June 2022 as well as published an update on its data strategy, which sets out the progress so far as well as the future focus areas.

    Consultation on LIBOR. This consultation seeks views on progress toward completing the transition away from the one-, three- and six-month sterling LIBOR settings. Market participants have informed FCA that they would value having a period of notice before the cessation of synthetic sterling LIBOR. To ensure adequate notice, FCA is seeking views on ceasing the requirement to continue publication of the one-, three- and six-month sterling LIBOR settings at the end of March 2023, instead of at end‑December 2022. FCA is also seeking views on when it will be possible for the three-month sterling LIBOR setting to cease in an orderly fashion. The consultation also seeks information related to USD LIBOR, wherein FCA wants to understand the size and nature of the remaining exposures where transition is not already provided for either by the contract or by legislation, and market participants’ plans to transition these exposures before the end of June 2023. FCA is seeking views on any challenges or issues that might result from the publication of any USD LIBOR settings on a synthetic basis. As conveyed earlier, FCA will consider the case for requiring continued publication, on a synthetic basis, of the one-, three- and six-month USD LIBOR settings. However, FCA also clarified that market participants should not rely on a synthetic USD LIBOR rate being available after June 30, 2023. As a next step, FCA will review its decisions to compel continued publication of the one-, three- and six-month sterling LIBOR settings and notify the market of the outcome. In due course, FCA will also assess whether it should require continued publication of USD LIBOR on a synthetic basis when the US dollar LIBOR panel ends.

    Data strategy update. FCA had set out its vision for the use of data and analytics at FCA in January 2020. This data strategy update sets out where the Authority has made progress, where more needs to be done, and where focus has increased. Overall, FCA has made significant progress in developing its technology, data services, and improving how it uses analytics and insights to support decision-making. So far, FCA has migrated its physical data center to a cloud-based service; developed a Data Lake to store all FCA data; implemented Analytics tools such as data visualization applications, reporting tools, and dashboards; implemented a new Decision Hub; and migrated 52,000 firms from Gabriel to the new data collection platform RegData. FCA has also put in place a "Single View" analytics tool to provide a "one stop shop" of key data and indicators about each firm and provide context for decisions on risks and where to intervene. FCA is continuing to modernize its enterprise architecture to a cloud-based system, with strengthened security and operational resiliency. FCA also plans to continue to collaborate with the Bank of England and industry to standardize how information is reported to FCA and to demonstrate how FCA can use new technology to reduce the cost of reporting with a commitment to deliver these initiatives in 2023. Another key initiative of FCA involves finding the right balance to achieving outcomes in a compliant and proportionate way, ensuring FCA meets the legal, policy, and ethical challenges to the sharing of data.

     

    Related Links


    Keywords: Europe, UK, Banking, Securities, LIBOR, Data Strategy, Regtech, Crypto-Assets, Reporting, Basel, Benchmark Reforms, Suptech, FCA, BoE

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582