On Sept. 21, 2020, the Bank of England (“Bank”) published a speech made by its Executive Director for Markets Andrew Hauser (“Hauser”) in which he sets out what businesses and lenders need to do to be ready for transition from LIBOR as it is being phased out. Hauser noted that businesses must (1) continue to move away from LIBOR to the Sterling Overnight Index Average (“SONIA”), (2) adopt the fallbacks for existing derivatives developed by the International Swaps and Derivatives Association Inc. (“ISDA”) by either singing the ISDA protocol or by making other firm plans and (3) reduce the exposure to other LIBOR-linked contracts which extend beyond the end of 2021.
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