IBOR Transition

LIBOR for most currency and tenor settings has either ceased or become non-representative as of the end of 2021. USD LIBOR for key tenors is still being published until 30 June 2023, however, this is for legacy use only. There is still some more work to do on the transition to alternative reference rates, particularly in respect of USD facilities. Non-LIBOR currencies are also going through a process of developing and encouraging the use of alternative reference rates either in replacement of, or as a fallback to, domestic interbank term rates. The LMA continues to work with the market, other trade associations and regulators on facilitating a smooth transition.

Latest News

FCA consultation on winding down synthetic sterling LIBOR and US dollar LIBOR

On 30 June 2022, the Financial Conduct Authority (FCA) announced a public consultation on winding down synthetic sterling LIBOR and US dollar LIBOR. Responses to the consultation will inform the review of FCA decisions to compel continued publication of the 1-, 3- and 6-month sterling LIBOR settings later this year, and in due course its assessment of whether to require continued publication of US dollar LIBOR on a synthetic basis when the US LIBOR panel ends on 30 June 2023. We would strongly encourage market participants from outside the UK (as well as those in the UK) to respond to this consultation given the global use of LIBOR and the fact that views are sought on US dollar LIBOR exposure and an assessment of whether to require continued publication of US dollar LIBOR on a synthetic basis. Consultation closes on 24 August 2022.

FSB statement emphasises importance of preparedness for cessation of USD LIBOR and of active transition from LIBOR and other IBORs

On 5 April 2022, the Financial Stability Board (FSB) published a statement welcoming the smooth transition away from LIBOR to robust alternative rates across global markets. Firms should maintain momentum in active transition of LIBOR legacy contracts referencing synthetic GBP and JPY LIBOR settings. The FSB intends to conduct a follow-up assessment in H2 2022 to identify any remaining transition and supervisory challenges in support of LIBOR transition.

Working Group on Euro Risk-Free Rates publishes 2022/23 Work Programme and call for interest on €STR-based forward-looking term structure

On 3 March 2022, the Working Group on Euro Risk-Free Rates (the Euro Working Group) announced its 2022/23 Work Programme alongside a call for expressions of interest from administrators developing €STR-based term structures as a fallback in EURIBOR-linked contracts. The deadline for responses is 8 April 2022.

Video Content

LMA webinar update on the transition from LIBOR in the loan market and the LMA's term SOFR document

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The ECA view on LIBOR transition

Hosted by Kam Mahil – LMA

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LIBOR discontinuance and its potential impact on developing markets

This webinar includes a 20-minute presentation followed by a 20-minute Q&A session.

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Swiss Loan Market Update

This webinar covers a wider loan market update and includes a discussion on LIBOR.

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An introduction to the LMA Exposure Drafts of Multicurrency Compounded Rate/Term Rate Facilities Agreements - On Demand

Press: Do Not Quote Speakers Without Seeking Authorisation First.

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View all our other LIBOR content on LMA Player

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