Christopher Kent: The end of Libor and the Australian market

Keynote address (online) by Mr Christopher Kent, Assistant Governor (Financial Markets) of the Reserve Bank of Australia, to ISDA Benchmark Strategies Forum Asia Pacific, 18 March 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Thank you for the opportunity to speak at this ISDA Forum on the very important issue of the end of LIBOR.

After many years of planning for the end of LIBOR, the deadline is now just 9½ months away. In that short time left, market participants need to take concrete steps to ensure they are ready for the end of LIBOR. An orderly transition away from LIBOR is important not only for your own firm, but for the smooth functioning of financial markets and the stability of the financial system.

Today, I want to focus on the steps firms need to take to be ready for the end of LIBOR. Ensuring that these steps are taken is a global regulatory priority. I will also give an update on progress in the Australian market and what's required in the period ahead. As part of that I will make a few remarks about the multiple-rate approach we are taking for Australia's local reference rates.