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FCA official: stick with overnight rates for all new contracts
Schooling Latter limits term rates to legacy contracts and wants backward-looking method for loans
![fca-edwin-schooling-latter fca-edwin-schooling-latter](/sites/default/files/styles/landscape_750_463/public/2018-06/fca-edwin-schooling-latter.jpg.webp?h=fe6a96e6&itok=RiqZvuv-)
The UK’s Financial Conduct Authority has urged banks to use backward-looking versions of overnight rates in all new contracts referencing risk-free rates (RFRs), rather than relying on the build-out of new forward-looking term rates to replace Libor.
While derivatives markets are already coalescing around compounded-in-arrears versions of Libor successor rates, Edwin Schooling Latter, the FCA’s director of markets and wholesale policy, has stepped up the call for newly issued cash instruments
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