LIBOR Discontinuance and the Derivatives Markets

On July 27, the Chief Executive of the UK Financial Conduct Authority announced that, after the end of 2021, the FCA would no longer use its power to persuade or compel panel banks to submit rate information used to determine the London Interbank Offered Rate, known as "LIBOR." LIBOR serves as a benchmark rate for hundreds of trillions of dollars of securities, loans and transactions, including over-the-counter and exchange-traded derivatives. The potential permanent discontinuance of LIBOR has significant implications for the derivatives market, especially for legacy transactions. Read more here.

CFTC Amends Recordkeeping Rules

On August 28, amendments recently adopted by the Commodity Futures Trading Commission to recordkeeping obligations under CFTC Rule 1.31 are scheduled to become effective. The CFTC periodically updates this rule to take into account technological advances and modernize requirements for persons subject to recordkeeping obligations under the U.S. Commodity Exchange Act or the CFTC's rules, known as "records entities." In proposing these amendments earlier this year, the CFTC acknowledged that recordkeeping has "evolved significantly" since its last overhaul of Rule 1.31 in 1999. Read more here.