swaps, we ’ ll need to see another jump if the market is to hit its target of ceasing all new libor use7 by the end of march next year. all new lending linked to sterling libor is also due to be phased out on the same timeline, with the exception of very short loans maturing before end - 2021. 8 those are challenging goals – particularly for firms that are still not ready to move away from libor, who have some rapid catching up to do. we recognise this comes at a time of difficult operating conditions more generally. but with libor ’ s retirement now in the diary, sending new business its way isn ’ t just optimistic – it ’ s imprudent too. though the precise timelines differ slightly in other currencies, the bottom line there is also clear. whether your firm is a lender or a borrower, you must be ready to transact any new or refinanced lending on a non - libor basis next year, a point underscored in a joint statement by us regulators last week. for firms with further to go, that could mean : spending time understanding the new non - libor products ; completing governance processes ; or adapting systems. https : / / www. bankofengland. co. uk / news / 2020 / september / fca - and - boe - joint - statement - on - sonia - interest - rate - swap other than for risk management of existing positions. for sterling market milestones, see https : / / www. bankofengland. co. uk / - / media / boe / files / markets / benchmarks / rfr / rfr - working - grouproadmap. pdf all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice but whatever it is you need to do, make sure you ’ re not left behind. help is available from your banks, trade associations and industry working groups. 9 2. adopting the isda fallbacks for existing derivatives redirecting new business away from libor is the critical step for securing the future. but we must ensure that libor - linked business from the past is made safe too. the vast majority of that business, by value, lies in the hundreds of trillions of dollars of libor derivatives contracts stretching beyond end - 2021. leaving those contracts without clarity when libor ends is un

for a world without libor either, leaving borrowers and lenders alike exposed to serious uncertainty and the risk of a disorderly outcome. where those contracts are expected to remain outstanding, the best chance of avoiding those risks lies in active conversion to another rate before the end of 2021. for sterling, the industry - led working group has strongly encouraged all market participants to complete, by the end of next march, a full assessment of their libor contracts extending beyond the end of 2021. the aim is to identify those that can be actively converted, and to put plans in place to complete those conversions wherever viable by the end of next september. this advice is echoed more broadly by the fsb in its global transition roadmap. 11 if you haven ’ t done so already, you should be making a start on that assessment. to stand a chance of controlling your destiny, you need to know what your exposures are, and how you ’ re going to deal with them over the course of next year. make and resource those plans now – we don ’ t want anyone to be caught out. and the regulators will be watching closely. conclusion retirements always seem far off, until they ’ re not. libor is no different. what once seemed a distant prospect is now very real. one by one the remaining areas of uncertainty are closing. now there ’ s just a year left for all market participants to get three key things done : - first, move all your new business off libor as soon as possible next year – and by the end of march for sterling ; - second, sign the isda protocol or make firm alternative plans ; and - third, work hard to convert any remaining legacy contracts away from libor. https : / / www. fsb. org / 2020 / 10 / global - transition - roadmap - for - libor / all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice to have got to this point is a quite remarkable achievement by everyone involved. working together, it ’ s time for one last push before we bid libor farewell for good. thank you. all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice