LIBOR transition and fallbacks in uncleared derivatives: Sterling Working Group statement and paper
The Working Group on Sterling Risk-Free Reference Rates has published a statement recommending that participants across the bond, loan and derivatives markets actively transition legacy sterling LIBOR contracts to SONIA as soon as possible, to ensure contractual certainty ahead of LIBOR cessation. For derivatives markets participants, the Sterling Working Group also published a paper outlining key considerations for counterparties that are preparing for the operation of IBOR fallbacks in non-cleared sterling LIBOR derivatives.
UK ETS auctioning regulations
The Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 (SI 2021/484) were made on 21 April 2021 and came into force on 22 April 2021 (Auctioning Regulations). They are accompanied by an explanatory memorandum. The Auctioning Regulations govern the auctioning of UK emissions allowances (UKAs) and the provision of a secondary market under the UK Emissions Trading Scheme (UK ETS) which commenced on 1 January 2021.
The Auctioning Regulations are related to the Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 (SI 2021/494), which were also made on 21 April 2021 and which amend UK financial services law to reflect the creation of the UK ETS and, among other things, establish an oversight role for the Financial Conduct Authority.
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Authored by Yvonne Clapham