Journal #49: ALTERNATIVE CAPITAL MARKETS

LIFE AFTER LIBOR : WHAT NEXT FOR CAPITAL MARKETS?

MURRAY LONGTON | Principal Consultant, Capco

In the aftermath of the financial crisis, rigging scandals, and sanctions, the days of LIBOR, the London Interbank Offered Rate, are numbered. As the predominant interest rate benchmark for USD, GBR, CHF, and JPY derivatives contracts, replacing LIBOR will fundamentally change the financial services industry. 

To prepare for this change, financial institutions need to engage in an enterprise-wide transformation early to identify, prevent, and mitigate risk. This will include impact assessment and implementing the necessary adjustments in the areas of:

Commercial strategy
Client strategy
Infrastructure
Processes
Controls 

In this paper, we share what businesses should expect to come next, and how they can prepare for the transition.