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On 27 July 2017, Andrew Bailey, Chief Executive of the UK Financial Conduct Authority, made a speech about the future of LIBOR stating that market participants should not rely on LIBOR being available after 2021. It is by no means certain that LIBOR will cease to be published post-2021, however, the LMA is working with the market, other trade associations and the regulators on contingencies should that prove to be the case at some future date.

What's New?

LIBOR Trade Association Working Group – Publication of minutes

Since Andrew Bailey's speech of July 2018, trade associations representing different product areas across the global financial markets have been in regular communication to discuss the key issues involved in the transition away from LIBOR to risk-free rates and to update each other on developments in relation to the transition. To raise awareness of this global and cross-product communication, minutes of the meetings of this joint group will be published going forward.


LMA and ACT paper on syndicated loans and forward-looking term rates

This joint publication by the LMA and ACT considers the use of forward-looking term rates in the syndicated loan market. In particular, it covers the key features of syndicated loans impacted by the transition from LIBOR to overnight risk-free rates, along with the implications for both borrowers and lenders of the transition. Click the arrow to access this article.


Webinar: Developments on the future of LIBOR and the impact on the syndicated loan market

This on-demand webinar is a recording of the Early Evening Seminar held on 24 May 2018 in London; the seminar was delivered by speakers from the LMA, ACT, FCA, HSBC, Allen & Overy and Lloyds Banking Group.

Developments in respect of LIBOR and the move to risk-free rates (LMA News H2 2018)

In the last LMA newsletter (H1 2018), the article ‘The potential discontinuation of LIBOR and the impact on the syndicated loan market’ considered the future of LIBOR, potential alternatives and issues for the loan market. This article provides an update on developments in respect of each of the LIBOR currencies and the LMA’s continued work on LIBOR transition.

LMA publishes updated version of revised Replacement of Screen Rate clause, which is now publicly available on the Bank of England website

The LMA has published an updated version of its "Revised Replacement of Screen Rate Clause". This update takes into account the publication of the Clause by the Sterling Risk-Free Rate Working Group. The wider publication of this language is an important step in raising awareness of the implications of the transition away from LIBOR and the need for parties to consider appropriate provisions for documentation referencing LIBOR. Click here to access

Selection of ESTER as the new euro risk-free rate

On 13 September 2018, the working group on euro risk-free rates recommended the euro short-term rate (ESTER) as the risk-free rate for the euro. ESTER will replace EONIA, which no longer meets the criteria of the EU Benchmarks Regulation ("BMR") and so will see its use restricted as of 1 January 2020. ESTER will also provide a basis for developing fallbacks for contracts referencing EURIBOR, as the compliance of its new hybrid methodology with the BMR will be assessed in 2019 (with no guarantee of a favourable outcome).