Together with the European Financial Markets Lawyers Group (the “EFMLG”)—a group of senior legal experts from the EU banking sector, hosted by the European Central Bank, dedicated to making analysis and undertaking initiatives intended to foster the harmonisation of laws and market practices and facilitate the integration of financial markets in Europe—the FMLC has sent a letter to regulatory authorities in key jurisdictions urging cooperation in relation to the discontinuance of LIBOR.
Given the problems of divergence and overlap that arise from the legislative approaches adopted by authorities in the U.K., E.U. and U.S., the letter observes that market transactions could become subject to conflicting legal or regulatory requirements and stresses that international coordination around the exercise of any powers to adapt benchmark methodology and/or the terms of financial transactions is essential to avoid significant market confusion.
The letter to HM Treasury is available for download below. Identical letters have also been sent to the Bank of England, the Working Group on Sterling Risk Free Reference Rates, the European Commission, ESMA, the FCA, the FSB and IOSCO.
Available as: PDF.