The UK Financial Conduct Authority (FCA) has issued a reminder of the expected cessation of the remaining synthetic US dollar LIBOR arrangements at the end of September 2024.
There are now 3 months to go until the 1, 3 and 6 month US dollar synthetic LIBOR settings are expected to stop after publication on Monday 30 September 2024.
These are the last remaining synthetic LIBOR settings and the last remaining total LIBOR settings. Their hiatus will mark the final milestone in the move away from LIBOR.
According to the FCA’s announcement in April 2023 and following its recent decision, it asked the ICE Benchmark Administration Limited (IBA) to continue publishing the 1, 3 and 6 month US dollar LIBOR settings in synthetic form until the end of September 2024.
The FCA has no intention of using our powers to compel the IBA to continue to publish the regulations beyond that date.
Market participants with outstanding US dollar LIBOR exposures should ensure that they are prepared for these remaining US dollar LIBOR synthetic arrangements to terminate within the expected timeframe.
Parties to contracts still quoted in USD LIBOR should take steps to transition to appropriate, strong reference rates, renegotiating with counterparties where appropriate.