The UK Financial Conduct Authority (FCA) today issued the final message ahead of the end-March 2024 deadline and a reminder of the expected end of US dollar synthetic LIBOR at the end of September 2024.
There is now 1 month until the 3-month Synthetic Sterling LIBOR facility ends for good on 28 March 2024. This is the last remaining Synthetic Sterling LIBOR facility and its end marks another critical milestone in the transition away from LIBOR.
In November 2022, the FCA announced that it intended to continue to require the IBA to publish the 3-month sterling LIBOR settlement in synthetic form until the end of March 2024, after which it would cease permanently. This was in line with feedback received in the June 2022 consultation.
Ahead of the deadline, companies with outstanding sterling LIBOR exposures should continue their active transition efforts.
The FCA also reminded market participants that the US dollar synthetic LIBOR is expected to stop in 7 months.
In November 2022, the FCA consulted on its proposals for a synthetic LIBOR in US dollars. In April 2023, the regulator confirmed its intention to require the IBA to continue to publish 1-, 3- and 6-month US dollar LIBOR settings in synthetic form until the end of September 2024.
Market participants should ensure that they are prepared for the expiry of these final US dollar LIBOR synthetic arrangements at the end of September 2024.
Parties to contracts still referenced to LIBOR should take steps to transition to strong, appropriate reference rates, renegotiated with counterparties where appropriate.