USD LIBOR

Benchmark interest rates - LIBOR.

USD LIBOR ceased publication at the end of June 2023.

A temporary synthetic USD LIBOR has been put in place until September 2024 to support the transition of legacy transactions that have not yet transferred to an appropriate replacement risk-free rate, such as SOFR.

USD LIBOR provided an indication of the average rate at which contributory panel banks in London could obtain wholesale, unsecured funding for a given period, denominated in USD.

New use of USD LIBOR is banned

"The remaining 5 US dollar LIBOR settings will continue to be calculated using panel bank submissions until mid-2023.

However, new use of US dollar LIBOR is now banned, with limited exceptions.

The US dollar risk-free rate SOFR is already being widely used in new business.

Firms should now focus on converting their legacy US dollar LIBOR contracts by mid-2023."

Changes to LIBOR as of end-2021 - Financial Conduct Authority.

Wind-down of LIBOR

"We are proposing to require LIBOR’s administrator, IBA, to continue to publish the 1-, 3- and 6-month US dollar LIBOR settings under an unrepresentative ‘synthetic’ methodology until end-September 2024.

After this, publication would cease permanently.

For sterling LIBOR, we intend to continue to require IBA to publish the 3-month synthetic sterling LIBOR setting until end-March 2024, after which it will cease permanently.

The effect of these announcements and proposals is that the final LIBOR publication would be end-September 2024:

• the 3 synthetic yen LIBOR settings will cease at end-2022
• the 1- and 6-month synthetic sterling LIBOR settings will cease at end-March 2023
• the overnight and 12-month US dollar LIBOR settings will cease at end-June 2023
• the 3-month synthetic sterling LIBOR setting will cease at end-March 2024
• the 1-, 3- and 6-month synthetic US dollar LIBOR settings would cease at end-September 2024"

Further consultation and announcements on the wind-down of LIBOR - Financial Conduct Authority - 23 November 2022.

See also

• Alternative Reference Rates Committee (ARRC)
• Benchmark
• Financial Conduct Authority (FCA)
• Legacy
• LIBOR
• Panel
• Panel bank
• Risk-free rates
• Setting
• SOFR
• Synthetic
• Synthetic LIBOR
• United States
• Unsecured
• USD
• Wholesale

Other resources

• Synthetic USD LIBOR to cease at end-September 2024 - Financial Conduct Authority - 29 February 2024

• Alternative Reference Rates Committee - about us

• Further consultation and announcements on the wind-down of LIBOR - Financial Conduct Authority - 23 November 2022

• Changes to LIBOR as of end-2021 - Financial Conduct Authority