Countdown 2021 and the end of an era : Mystique, scandals and the Endgame for the LIBOR market

The London Inter-Bank Offered Rate (LIBOR) market in various jurisdictions had become the subject of widespread abuse and systemic manipulation. The manipulation of the LIBOR reference rate allowed dominant market players to extract arbitrage profits from their abusive conduct. The LIBOR scandal involved significant international financial institutions including Barclays Bank, UBS Group AG, Deutsche Bank and Australia's “Big Four” banks. The article explores the central reasons as to why the LIBOR market had become susceptible to market manipulation, with moves now from regulatory authorities to end LIBOR as a global benchmark market. The article examines the challenges that remain with the transition away from LIBOR to risk-free rates including the orderly wind-down of LIBOR with legacy contracts.