Libor Marks ‘Important Day’ With Partial Fix for Derivative Risk
- New legal framework could prevent chaos when Libor is retired
- ‘Important day’ for the derivatives market: Goldman Sachs
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Untangling the vast global derivatives industry from Libor just got a bit easier.
The London interbank offered rate is hardwired into swaps and other contracts worth hundreds of trillions of dollars, but it’s slated to disappear in the not-too-distant future. If the move to replacement rates doesn’t go smoothly, that could cause major discord in markets.