FCA sets out timetable for Libor withdrawal

The Financial Conduct Authority (FCA) has announced the dates that panel bank submissions for all Libor settings will cease, after which representative LIBOR rates will no longer be available

This is an important step towards the end of Libor, and the Bank of England and FCA urge market participants to continue to take the necessary action to ensure they are ready.

The FCA has confirmed that all Libor settings will either cease to be provided by any administrator or no longer be representative immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the one-week and two-month US dollar settings; and immediately after 30 June 2023, in the case of the remaining US dollar settings.

The Bank of England and the FCA have made it clear over a number of years that the lack of an active underlying market makes Libor unsustainable, and unsuitable for the widespread reliance that had been placed upon it. Accordingly, both have worked closely with market participants and regulatory authorities around the world to ensure that robust alternatives to Libor are available and that existing contracts can be transitioned onto these alternatives to safeguard financial stability and market integrity.

FCA CEO Nikhil Rathi said: ‘The announcements provide certainty on when the Libor panels will end. Publication of most of the Libor benchmarks will cease at the same time as the panels end. Market participants must now complete their transition plans.’

Bank of England Governor Andrew Bailey said: ‘These announcements mark the final chapter in the process that began in 2017, to remove reliance on unsustainable Libor rates and build a more robust foundation for the financial system. With limited time remaining, my message to firms is clear – act now and complete your transition by the end of 2021.’

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