BMR rift fuels zombie Libor uncertainty

False rate could limp on for months under EU’s benchmark regulation

Libor-uncertainty

Debate on whether the swaps industry should embed pre-cessation triggers into trades referencing doomed benchmark Libor is snagging on a difference of opinion over how European regulation affects the rate’s final days.

Under the European Union’s Benchmarks Regulation, a rate that is deemed unrepresentative of underlying markets can continue to be published for a “reasonable time period” during which the benchmark operator attempts to patch it up.

Fixing large numbers of financial transactions

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