ICMA has been engaging with the official sector and members on the global issue of benchmark reform for several years.
ICMA’s focus has centred on the development of Risk-Free Reference Rates (RFRs)1, and the transition of legacy LIBOR bonds to RFRs, either by way of a market-based solution to actively transition them, or by way of legislation.
- On 30 September 2024, the remaining synthetic LIBOR settings were published for the last time and all 35 LIBOR settings ceased permanently.
- A significant milestone was achieved on 30 June 2023, by which stage all panel bank LIBOR settings2 ceased publication.
- A form of ‘synthetic’ 3-month sterling LIBOR was published until 28 March 2024.
- US dollar LIBOR ceased on 30 June 2023. A US federal legislative solution (the US LIBOR Act) establishes a clear and uniform process for replacing US dollar LIBOR in existing US law-governed contracts where the terms do not provide for the use of a clearly defined or practicable replacement.
- For legacy US dollar LIBOR bonds governed by English and other non-US laws, a form of ‘synthetic’ 1-, 3- and 6-month US dollar LIBOR will continue to be published until 30 September 2024.
ICMA is a member of the Working Group on Sterling Risk-Free Reference Rates, with Paul Richards (Head of Market Practice and Regulatory Policy, ICMA) chairing a sub-group focusing on benchmark issues in bond markets. ICMA was also a non-voting member of the Working group on euro risk-free rates and participated in the National Working Group on Swiss Franc Reference Rates3.
(1 RFRs were developed in response to recommendations by the Financial Stability Board (FSB) to increase confidence in the reliability and integrity of interest rate benchmarks).
(2 including sterling, US dollar, Japanese yen, Swiss franc and euro LIBOR).
(3 This group has since been dissolved due to the successful replacement of Swiss franc LIBOR).
Set out below is a list of ICMA briefings and releases on the global transition to RFRs, together with links to ICMA and official sector information and other materials.
ICMA materials
- 10 October 2024: The cessation of synthetic US dollar LIBOR by Katie Kelly, ICMA.
- 10 January 2024: The cessation of synthetic sterling LIBOR by Katie Kelly, ICMA.
- 11 October 2023: Quarterly Assessment on “Synthetic US dollar LIBOR: the remaining task in the bond market'' by Paul Richards, ICMA.
- 17 July 2023: ICMA Podcast Transition from Legacy US Dollar LIBOR in Bond Market with four leading law firms.
- 13 April 2023: Cessation of panel bank US dollar LIBOR: implications for bonds under English law by Paul Richards, ICMA.
- 6 January 2023: ICMA response to FCA CP22/21 on ‘synthetic’ US dollar LIBOR.
- September 2022: The transition of legacy US dollar LIBOR bonds under English law by Paul Richards, ICMA.
- 1 August 2022: ICMA response to FCA CP22/11 on winding down ‘synthetic’ sterling LIBOR and US dollar LIBOR.
- 12 July 2022: Transition from LIBOR in the bond market, by Charlotte Bellamy and Katie Kelly, ICMA.
- 6 April 2022: The transition from LIBOR in the bond market: progress and remaining steps, by Paul Richards, ICMA.
- 12 January 2022: Transition from LIBOR to risk-free rates: Tough legacy bonds, Continued active transition of sterling LIBOR-linked legacy bonds, EU designation of synthetic LIBOR and Completion of SARON transition, by Charlotte Bellamy and Katie Kelly, ICMA.
Key statements and publications
UK:
- September 2024: The FCA, the Bank of England and the RFR Working Group released a statement announcing that on 30 September 2024, the remaining synthetic LIBOR settings were published for the last time and LIBOR came to an end. All 35 LIBOR settings have now permanently ceased. Following agreement from its members, the RFR Working Group will be wound down on 1 October 2024. The statement also said that:
- Market participants should use the most appropriate rates for each currency, such as SONIA for GBP and SOFR for USD.
- Market participants should ensure their use of term RFRs, such as term SONIA and term SOFR, are limited and remain consistent with the relevant guidance on best practice on the scope of use.
- With the transition away from LIBOR completed, the Bank, the FCA and the RFR Working Group reminded market participants that credit sensitive rates (CSRs) should not emerge as successor rates.
- September 2024: The FCA released a statement announcing that they will not use their powers to compel ICE Benchmark Administration to continue to publish the 1-, 3- and 6-month US dollar LIBOR settings in synthetic form beyond the end of September 2024. Ahead of this deadline, firms with outstanding US dollar LIBOR exposures must continue their active transition efforts.
- July 2023: The FCA released a statement announcing the cessation of USD LIBOR and the publication of 1-, 3- and 6-month USD LIBOR using a synthetic methodology. The statement also warns against the transition to credit sensitive rates which have the potential to reintroduce many of the financial stability risks associated with LIBOR.
View more...
US:
- December 2023: The ARRC released its Closing Report: Final reflections on the transition from LIBOR
- June 2023: The ARRC released a read-out from its meeting on 22 June 2023.
- June 2023: The ARRC released a statement designating Peter Phelan as Chair of the ARRC to succeed Tom Wipf from 1 July.
View more...
Global:
- August 2023: The FCA and New York Fed published a joint op-ed on lessons learned from the LIBOR transition. Within the publication, they reiterated the decade-long effort involved in moving away from LIBOR and coordination and cooperation from members of the FSB’s Official Sector Steering Group, they mentioned rebuilding the global financial system through public-private partnerships and highlighted that financial innovations of today need strong foundations from the start, with global alignment, so they don’t become the sources of failures and repairs further down the line.
- July 2023: The FSB released a statement following the end of the remaining USD LIBOR panel at the end of June 2023.
- July 2023: IOSCO released a statement on alternatives to USD LIBOR, in which it highlights regulatory authorities’ concerns that certain credit sensitive rates (CSRs) currently in use exhibit some of the same inherent “inverted pyramid” weaknesses as LIBOR.
View more...
Other jurisdictions:
- December 2023: The Euro RFRWG has published minutes of its meeting of 13 November.
- October 2023: The EUR RFR WG has published an updated version of a Term €STR rates Comparative Table.
- May 2023: The Working Group on Euro Risk-Free Rates has released Guidance for Corporate Lending Products for Implementing the Recommendations on EURIBOR Fallback Trigger Events and €STR-based EURIBOR Fallback Rates.
General information and materials:
- FSB information and materials
- ESMA information and materials
- Financial Conduct Authority information and materials
- Working Group on euro risk-free rates information and materials
- Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks information and materials
- Working Group on Sterling Risk-Free Rates information and materials
- The National Working Group on Swiss Franc Reference Rates information and materials
- US dollars: Alternative Reference Rates Committee information and materials
Contact:
Katie Kelly
Senior Director, Market Practice and Regulatory Policy; Secretary to the ICMA Financial Institution Issuer Forum (FIIF) and to the ICMA Corporate Issuer Forum (CIF).
Direct line: +44 20 7213 0331
January 2022
ICMSA Bulletin - Synthetic LIBOR, type 1 fallbacks an dealer poll mechanisms
May 2021
ICMSA Bulletin – The role of Calculation Agents and Benchmark Agents/Independent Advisors
January 2021
ICMSA Bulletin on the discontinuation of LIBOR/IBORS – implications for English-law note trustees and agency roles – Update – Legacy Transactions
January 2021
ICMSA Bulletin on the discontinuation of LIBOR/IBORS – operational and procedural considerations for Consent Solicitations and Written Resolutions
June 2020
ICMSA Bulletin on the discontinuation of LIBOR/IBORs – timeline of a consent solicitation
March 2020
ICMSA Bulletin on different approaches for IBOR transition under English law trust deeds and New York law indentures
January 2020
ICMSA Bulletin 200120/47 – Benchmark replacement and fallback provisions – Key principles and guidelines for agents and trustees
18 January 2019
ICMSA Bulletin 190118/45: The discontinuation of LIBOR/IBORS - implications for English-law agency roles
1 November 2018
ICMA and SIX Joint Conference - LIBOR to SARON: Are you ready?
Presentations given at this event are available on the ICMA event webpage.
18 October 2018
ICMSA Bulletin 81018/44: Implications for English law Trustees on discontinuation of LIBOR/IBORs
15 February 2017
ICMA response to the ICE Benchmark Administration Limited Additional Consultation on ICE LIBOR Evolution
31 March 2016
ICMA response to ESMA Discussion Paper on Benchmarks Regulation
29 January 2016
ICMA response to EMMI Consultative Position Paper on the Evolution of Euribor
16 October 2015
ICMA response to the ICE Benchmark Administration Limited Second Position Paper on the Evolution of ICE LIBOR
19 September 2014
ICMA response to the ICE Benchmark Administration Error Policy Consultation
29 November 2013
ICMA response to to ILOC / BBALIBOR Joint Consultation Paper on LIBOR Re-fixing
16 May 2013
ICMA response to IOSCO’s consultation on "Principles for Financial Benchmarks"
11 February 2013
ICMA response to IOSCO’s consultation on "Financial Benchmarks"
ICMA response to ESMA-EBA’s joint consultation on “Principles for Benchmark Setting Processes in the EU”
6 December 2012
ICMA response to the BBA’s consultation on "Strengthening LIBOR"
27 November 2012
ICMA response to the European Commission’s "Consultation Document on the Regulation of Indices"
7 September 2012
ICMA submission in relation to the August 2012 initial discussion paper “The Wheatley Review of LIBOR”
Contact:
Katie Kelly
Senior Director, Market Practice and Regulatory Policy; Secretary to the ICMA Financial Institution Issuer Forum (FIIF) and to the ICMA Corporate Issuer Forum (CIF).
Direct line: +44 20 7213 0331
20 November 2020
Joint trade association letter regarding the third country transitional provisions of the EU Benchmarks Regulation
20 January 2020
APLMA, ASIFMA, ICMA, ISDA and KPMG held a webcast covering all aspects of LIBOR transition readiness, especially as it pertains to Asia-Pacific jurisdictions. This session focused on issues relevant for buy-side firms and corporate treasurers, such as debt issuance, interest rate derivatives hedging, and debt instruments held by investment managers.
25 June 2018
IBOR Global Benchmark Report 2018
Download the press release
1 February 2018
IBOR Global Benchmark Survey 2018 Transition Roadmap
Download the press release
31 January 2018
Joint trade association letter to the FSB regarding implementation of risk free rates and transition away from LIBOR: key issues for the global financial markets
Minutes of LIBOR Trade Association Working Party Meetings
- October 2023
- July 2023
- April 2023
- January 2023
- October 2022
- March 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- November 2019
- October 2019
- September 2019
- July 2019
- June 2019
- May 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
Contact:
Katie Kelly
Senior Director, Market Practice and Regulatory Policy; Secretary to the ICMA Financial Institution Issuer Forum (FIIF) and to the ICMA Corporate Issuer Forum (CIF).
Direct line: +44 20 7213 0331
