At a Financial Stability Oversight Council meeting on June 11, 2021, Federal Reserve Board Vice Chair for Supervision Randal K. Quarles encouraged the move toward the Secured Overnight Financing Rate and warned banks that the use of USD LIBOR quotes available after December 2021 for new products would create safety-and-soundness risks.
Commentary by Nihal Patel
The SEC staff issued a statement “in light of the now-certain transition away from LIBOR” reminding investment professionals of their obligations when recommending LIBOR-linked securities and related investment products and strategies, including interest rate swaps, municipal securities and securitizations.
A global provider of stock market indices settled SEC charges for the dissemination of stale index values due to an undisclosed quality control feature in one of its volatility-related indices.
In a statement on the discontinuation of LIBOR, the SEC staff noted the risks associated with the transition from LIBOR to alternative reference rates.
Federal Reserve Bank of New York President John C. Williams urged market participants to prepare for the end of LIBOR.