The Bank of England (BOE) has a message for financial businessesexiting the scandal-plagued London interbank offered rate (LIBOR)benchmark: Get moving.

It issued a statement on Thursday giving banks until Septemberto cease issuing cash products linked to sterling-denominatedLIBOR, a benchmark which underpins $30 trillion of financialcontracts in sterling markets alone. The direction is part of awider effort to speed up transition in the derivatives marketbefore the benchmark expires at the end of 2021.

"There is a lot to be done," said Simon Woods, a partner atErnst & Young LLP. "Firms not being ready gives rise tocommercial and regulatory risks, and we expect some banks may needto reprioritize their change programs to hit many of the upcomingdeadlines."

See also:

• LIBOR's Demise Will Up-end Derivatives
• Richard Sandor's AMERIBOR Roadshow
• "Zombie LIBOR" Threatens Market's ComplacentView
• LIBOR's Looming Demise Is a Massive FinancialEngineering Task
• Battle of the Benchmarks Continues
• LIBOR Replacement Contenders

In 2017, the BOE started the countdown on retiring LIBOR, usedfor $300 trillion of contracts globally including bonds and loans.For decades the rate served as a benchmark set daily by banks todetermine interest rates on everything from student loans andmortgages to derivatives and credit cards. But ever since Europeanand U.S. banks were found to have manipulated rates to benefittheir own portfolios, the benchmark has been seen as tainted.