[LONDON] The head of Britain's financial markets watchdog said on Thursday that a substitute index for the Libor interest rate benchmark should be in place by the end of 2021.

Libor is based on submissions from banks of interest rates they believe they would be charged by others for borrowing money.

Andrew Bailey, chief executive of the Financial Conduct Authority, told an event in London that work must "begin in earnest" on shifting to an alternative index, saying the end of 2021 would offer time to ensure a smooth transition.

REUTERS