In May 2022, the Bank of Japan published its "Review of JPY LIBOR Transition Response and Future Initiatives".
This report is a review of the publication of Yen LIBOR, which was suspended at the end of December 2021, and a summary of future efforts, particularly with regard to the establishment of alternative benchmarks to replace LIBOR and the transition away from USD LIBOR, which is scheduled to be suspended in June 2023.
As part of our efforts to educate market participants on the LIBOR transition, FIA Japan invited the Head of the Market Infrastructure Division of the Bank of Japan's Financial Markets Department to speak at the “FIA Japan 2021 Virtual Conference”, which was held in March 2021, on the importance of the LIBOR transition. This was followed by a panel discussion titled “Transition away from LIBOR Benchmark and Implication for the Futures Market" that discussed the importance and role of the futures market and the need for liquidity in alternative LIBOR benchmarks for the yen interest rate market.
FIA Japan will continue to educate the public on such important initiatives occurring in the Japanese capital markets and will work towards further developing the futures market.