The London Interbank Offered Rate (Libor) is the reference interest rate for financial products worth more than a staggering $240tn. No wonder it has been called the “world’s most important number”. Nevertheless, it may soon be a non-existent number.

After the Libor-fixing scandal, and the resulting $10bn of fines, both regulators and banks want reference rates that are based on observed market prices rather than “expert judgement”. However, unsecured interbank lending — the market Libor is supposed to represent — has decreased dramatically over the last 10 years, making objective reporting of rates practically impossible. The UK’s Financial Conduct Authority announced in 2017 that, from 2021, it will no longer “compel or persuade” panel banks to submit the information used to create Libor.