ICMSA Publication

20.01.22

ICMSA Bulletin 220119/59 – Synthetic LIBOR, Type 1 fallbacks and dealer poll mechanisms

Following the discontinuation of certain GBP and JPY LIBOR settings and the publication of synthetic LIBOR, this bulletin considers whether Type 1 fallbacks and in particular, the dealer poll mechanism which is central to their operation, remain appropriate and suitable in a post-LIBOR environment. The bulletin highlights statements made on this topic in December 2021 in a speech by the FCA’s Edwin Schooling Latter and concludes that the use of dealer poll mechanisms to obtain quotes for LIBOR-based rates is not appropriate or practicable in circumstances where the relevant LIBOR settings are no longer published.

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