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The View from Washington: A Conversation with FCA CEO Andrew Bailey and NYFRB President John Williams

In this episode of “The View from Washington,” Financial Conduct Authority CEO Andrew Bailey and Federal Reserve Bank of New York President and CEO John C. Williams sit down with SIFMA President and CEO Kenneth E. Bentsen, Jr. to discuss the transition from LIBOR to alternative reference rates. From the development of the Secured Overnight Financing Rate (SOFR) to a path for tough legacy contracts, watch their discussion to understand the urgent need for the financial industry to engage with this issue now.

It’s a very deliberate move to put LIBOR – as it should be – right on the agenda of firms and ensure it’s there.” – Andrew Bailey

We don’t want to wait for a term rate to be developed and in the market in order to make progress on the LIBOR transition. The vast majority of the products out there can be based on SOFR and should be based on SOFR.” – John C. Williams

You can’t assume that LIBOR will be there after the end of 2021. So don’t plan on the basis that you can go on as before because either it won’t be there or what will be there will, frankly, not be what’s there today.” – Andrew Bailey

The best solution for the legacy problem is to stop creating LIBOR-based products… Every day more LIBOR-based products are created, the more risk there is in the future.” – John C. Williams

A Conversation with FCA CEO Andrew Bailey and New York Fed President and CEO John Williams

 

This discussion was filmed immediately before SIFMA’s LIBOR Transition Briefing, held in New York City on July 15, 2019.

Kenneth E. Bentsen, Jr. is president and CEO of SIFMA, the voice of the nation’s securities industry. He is also CEO of the Global Financial Markets Association (GFMA), of which SIFMA is the U.S. regional member.

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About The View From Washington

“The View from Washington” short video series features in-depth conversations with top financial regulatory leadership about crucial developments and big ideas with the potential to impact the markets and the industry.

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