FCA has reminded firms of the remaining actions they need to take as the end of the year approaches and, with it, the cessation of calculation of most LIBOR rates.
From 1 January 2022, 24 of the 35 LIBOR settings will no longer be available. 6 sterling and yen LIBOR settings will continue throughout 2022 but calculated in a way that does not rely on submissions from panel banks, and new use of these “synthetic” LIBOR rates will not be allowed. They will be allowed only in legacy contracts except for cleared derivatives. On 1 January 2022, FCA will publish notices requiring the LIBOR administrator to change the way the 6 settings are calculated.
5 USD LIBOR settings will continue to be calculated using panel bank submissions under mid-2023, but new use of USD LIBOR will be restricted from the end of 2021 with limited exceptions.