FCA is consulting on its proposed decisions to use its powers under the amended Benchmarks Regulation for certain LIBOR settings. It seeks views on whether and how to
- permit legacy use of 1 month, 3 month and 6 month sterling and 1 month, 3 month and 6 month yen LIBOR from 1 January 2022 (the date from which they will become designated critical benchmarks); and
- prohibit new use of overnight, 1 month, 3 month, 6 month and 12 month US dollar LIBOR, and for this to continue to mid-2023.
The Benchmarks Regulation allows FCA to designate critical benchmarks, which means that in principle supervised entities will not be able to use it. However, FCA also has the power to permit some legacy use. FCA asks for views by 20 October.