We are consulting on how we would use our compulsion powers for the London Interbank Offered Rate (LIBOR) and setting out our proposed approach to using these powers.
LIBOR is a systemically important benchmark underpinning transactions in many different markets worldwide. Its reliability and accuracy are very important to market integrity, in the UK and globally.
LIBOR is based on input data that is contributed by banks. We have the power to require banks to contribute this data if necessary, and will have new powers to require contributions under the EU Benchmarks Regulation (BMR) when the European Commission designates LIBOR as a ‘critical’ benchmark, potentially later this year, or when the BMR applies in full in 2018.
We are reviewing the way in which we would use our compulsion powers should that be necessary, and this Consultation Paper sets out our proposed approach on this.
This consultation most directly affects banks that are current or potential submitters to LIBOR, and the administrator of LIBOR, ICE Benchmark Administration Limited. You may also be indirectly affected if you use LIBOR, for example, in hedging products or loan agreements.
Please send us your comments by 12 August 2017:
You can also:
We will consider your feedback and aim to publish a summary of responses and a Policy Statement in September 2017.