IBA Consults on Intention to Stop Publishing LIBOR

IBA intends to continue publishing the overnight and 1, 3, 6 and 12 month USD LIBOR settings until 30 June 2023. All other LIBOR settings would cease by 31 December 2021.

IBA (ICE Benchmark Administration) has published its consultation on its intention to cease the publication of LIBOR settings.

The consultation has been expected, following recent announcements from IBA that it planned to consult on its intention to cease the publication of all GBP, EUR, CHF and JPY LIBOR settings from 31 December 2021. IBA also said it planned to consult on ceasing the publication of the one week and two month USD LIBOR settings on 31 December 2021; and the other tenors on 30 June 2023 (18 months longer than originally anticipated).

The US Federal Reserve Board and UK FCA (Financial Conduct Authority) have each already issued statements welcoming the proposals, and highlighting expectations that no new contracts that use USD LIBOR as a reference rate be issued after 31 December 2021.

The IBA consultation, available here, is open for feedback until 25 January 2021.

IBA notes that any publication of the overnight and 1, 3, 6 and 12 month USD LIBOR settings based on panel bank submissions beyond 31 December 2021 will need to comply with applicable regulations, including as to representativeness. Based on current information from panel banks, IBA anticipates there being a representative panel for the continuation of these USD LIBOR settings through to 30 June 2023.

After the feedback period has closed, IBA intends to share the results of the consultation with the FCA and to publish a feedback statement summarising the responses shortly thereafter.

The consultation should not be taken to be an announcement that IBA will cease or continue the provision of any LIBOR settings after 31 December 2021 or 30 June 2023.

On Friday (4 December), ISDA published a webinar (below) discussing the implications of the consultation.

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