3-month synthetic sterling LIBOR – 1 month to go

It is now 1 month until the 3-month synthetic sterling LIBOR setting ceases permanently on 28 March 2024. 

This is the last remaining synthetic sterling LIBOR setting, and its end marks another critical milestone in the transition away from LIBOR.  

In November 2022, we announced[1] that we intend to continue to require IBA to publish the 3-month sterling LIBOR setting in synthetic form until end-March 2024, after which it will cease permanently. This was in line with the feedback[2] received to our June 2022 consultation[3]. 

Ahead of the deadline, firms with outstanding sterling LIBOR exposures must continue their active transition efforts. 

Today, we have also published a report[4], under Article 23E of the Benchmarks Regulation (BMR), setting out our review of whether the use of our power under Article 23D(2) of the BMR with respect to 3-month synthetic sterling LIBOR has advanced our consumer protection and integrity objectives. 

The report concludes that the way in which we have exercised our power to require IBA to publish 3-month sterling LIBOR under a changed, synthetic methodology for the period between 1 January 2022 and 1 January 2024 (the review period) has advanced both our statutory objectives. 

Synthetic US dollar LIBOR 

We would also like to remind market participants that US dollar synthetic LIBOR is expected to cease in 7 months’ time.  

In November 2022, we consulted[2] on our proposals for a synthetic US dollar LIBOR. In April 2023, we confirmed[5] our intention to require IBA to continue to publish the 1-, 3- and 6-month US dollar LIBOR settings in synthetic form until end-September 2024. 

Market participants must ensure they are prepared for these final synthetic US dollar LIBOR settings to cease at end-September 2024. 

Parties to contracts still referencing LIBOR should be taking steps to transition to robust, appropriate reference rates, re-negotiating with counterparties where necessary.