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USD zombie LIBOR lives on

The FCA has announced that the synthetic 1-, 3- and 6 month USD LIBOR will be extended until 30 September 2024. Previously scheduled to end on 30 June 2023, the FCA refers to the extension as a “short period”. The synthetic LIBOR tenors will be available to all market users for rate-setting of legacy contracts, […]

Decimated LIBOR zombies stagger on

On the 23 November 2022, the FCA announced a significant extension for 3m GBP synthetic LIBOR and proposed the publication of synthetic USD LIBOR settings until 30 September 2024.  The Regulator will employ its powers under the UK Benchmarks Regulation to compel ICE Benchmark Administration to publish 3m synthetic LIBOR until 31 March 2024. The […]

FCA consults on final LIBOR funeral dates

Yesterday, The FCA published a promised consultation on the winding down of synthetic GBP and USD LIBOR. 31 December 2021 famously marked the funeral for 24 LIBOR settings. However, in order to allow more time for “tough legacy” contracts to transition to the replacement RFRs, the FCA continued to compel publication of synthetic LIBOR rates […]

LIBOR’s Shallow Grave

The final day of 2021 marked the passing of LIBOR, simultaneously the world’s most important number and most disgraced benchmark. Perhaps inevitably, the funeral has turned out to be more ambiguous than most, the attendant wake promises to be a drawn-out and slightly messy affair. Following over 4 years of preparation and an estimated $10bn […]

Zombie LIBOR birthday official

Ahead of LIBOR’s end of year demise, market participants have been waiting for clarification from the FCA on what “tough legacy” actually constitutes, i.e. those contracts which may continue to reference synthetic LIBOR. Following yesterday’s publication of a series of documents, it turns out that “tough” might be better expressed as “slightly irksome”.  Para 4.28 […]

Another day, another LIBOR warning

On 24 June 2021, the EC issued a joint statement with the EBA, ECB and ESMA, warning all market participants to cease their use of any LIBOR settings. The statement reminds readers that the amended BMR has been in force since 13 February 2021, most particularly Art. 23b empowering the EC to designate a replacement rate for […]

(L)IBOR’s long farewell- Japan edition

Japan’s TIBOR administrator (JBATA) has today announced its intention to consult on its intention to discontinue Euroyen TIBOR at the end of December 2024, while continuing to retain JPY TIBOR. As a quick reminder, there are three principal JPY interbank offered rates: JPY LIBOR. FCA jurisdiction. Published at 11.55 a.m. London time. Submitted by a […]

LIBOR cessation date set

The FCA has today issued the official death knell for LIBOR. The announcement constitutes an index cessation event under the IBOR Fallbacks Supplement and the ISDA 2020 IBOR Fallbacks Protocol for all 35 LIBOR settings. 5 March 2021 is therefore the date on which the fallback spread adjustment will be fixed. Publication of 26 LIBOR […]

HMT consult on LIBOR “Safe Harbour”

15 February 2021, HM Treasury launched a consultation titled “Supporting the wind-down of critical benchmarks”.  On 21 October 2020, the government introduced the Financial Services Bill to Parliament. This Bill includes amendments to the Benchmarks Regulation (BMR), which provide the FCA with new and enhanced powers to oversee the orderly wind-down of critical benchmarks, such […]

Commission to be granted rate-replacement powers

On 30 November 2020, the EU Parliament and Council reached agreement on Commission-proposed amendments to the BMR. In anticipation of LIBOR’s end’ 2021 demise, the amendments give the Commission to power to propose replacement for the benchmark categories: “critical” benchmarks, which influence financial instruments and contracts with an average value of at least €500 billion […]

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