USD LIBOR
From ACT Wiki
Benchmark interest rates - LIBOR.
USD LIBOR provides 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 (proposed) "
- Further consultation and announcements on the wind-down of LIBOR - Financial Conduct Authority - 23 November 2022.
See also
- Benchmark
- Financial Conduct Authority (FCA)
- Legacy
- LIBOR
- Panel
- Panel bank
- Risk-free rates
- Setting
- SOFR
- Synthetic
- Synthetic LIBOR
- United States
- Unsecured
- USD
- Wholesale
