ICMA has been engaging with the official sector and members on the global issue of benchmark reform for several years.

ICMA’s focus has centred on the development of Risk-Free Reference Rates (RFRs)1, and the transition of legacy LIBOR bonds to RFRs, either by way of a market-based solution to actively transition them, or by way of legislation.

  • A significant milestone was achieved on 30 June 2023, by which stage all panel bank LIBOR settings2 ceased publication.
  • A form of ‘synthetic’ 3-month sterling LIBOR will continue to be published until end March 2024.
  • US dollar LIBOR ceased on 30 June 2023. A US federal legislative solution (the US LIBOR Act) establishes a clear and uniform process for replacing US dollar LIBOR in existing US law-governed contracts where the terms do not provide for the use of a clearly defined or practicable replacement.
  • For legacy US dollar LIBOR bonds governed by English and other non-US laws, a form of ‘synthetic’ 1-, 3- and 6-month US dollar LIBOR will continue to be published until end September 2024.

ICMA is a member of the Working Group on Sterling Risk-Free Reference Rates, with Paul Richards (Head of Market Practice and Regulatory Policy, ICMA) chairing a sub-group focusing on benchmark issues in bond markets. ICMA is also a non-voting member of the Working group on euro risk-free rates and participated in the National Working Group on Swiss Franc Reference Rates3.

(1 RFRs were developed in response to recommendations by the Financial Stability Board (FSB) to increase confidence in the reliability and integrity of interest rate benchmarks).
(2 including sterling, US dollar, Japanese yen, Swiss franc and euro LIBOR).
(3 This group has since been dissolved due to the successful replacement of Swiss franc LIBOR).

Key recent materials
Other materials
Joint trade association materials
Key recent materials

Set out below is a list of ICMA briefings and releases on the global transition to RFRs, together with links to ICMA and official sector information and other materials. In addition, benchmark-related resources in selected Asia-Pacific markets are available on this ICMA webpage.



ICMA materials

               

View more...



Key statements and publications

UK: 

  • July 2023: The FCA released a statement announcing the cessation of USD LIBOR and the publication of 1-, 3- and 6-month USD LIBOR using a synthetic methodology. The statement also warns against the transition to credit sensitive rates which have the potential to reintroduce many of the financial stability risks associated with LIBOR.
  • May 2023: The FCA have published a Feedback Statement related to the November 2022 consultation on ‘synthetic’ USD LIBOR, together with an announcement of final messaging before panel bank USD LIBOR ends on 30 June 2023.
  • April 2023: A statement was released and published on the websites of The Bank of England, the FCA and the Sterling Risk-Free Rates Working Group, encouraging market participants to: actively transition USD LIBOR contracts ahead of the cessation of the USD LIBOR panel at end-June 2023; ensure readiness for implementation of USD LIBOR fallbacks, including planned CCP conversion events and operationalisation of the ISDA 2020 IBOR Fallbacks Protocol; ensure they transition to the most robust RFRs; and continue to actively transition any remaining legacy contracts from synthetic GBP LIBOR to SONIA.

View more...


US:

  • December 2023: The ARRC released its Closing Report: Final reflections on the transition from LIBOR
  • June 2023: The ARRC released a read-out from its meeting on 22 June 2023.
  • June 2023:  The ARRC released a statement designating Peter Phelan as Chair of the ARRC to succeed Tom Wipf from 1 July.
  • May 2023: The ARRC released a statement on the last 30 days before USD LIBOR panels end. In the statement, it states that firms should already be fully prepared for this deadline, and those with remaining exposures are urged to draw upon readily available transition tools now.

View more...


Global:

  • August 2023: The FCA and New York Fed published a joint op-ed on lessons learned from the LIBOR transition. Within the publication, they reiterated the decade-long effort involved in moving away from LIBOR and coordination and cooperation from members of the FSB’s Official Sector Steering Group, they mentioned rebuilding the global financial system through public-private partnerships and highlighted that financial innovations of today need strong foundations from the start, with global alignment, so they don’t become the sources of failures and repairs further down the line.
  • July 2023: The FSB released a statement following the end of the remaining USD LIBOR panel at the end of June 2023.
  • July 2023: IOSCO released a statement on alternatives to USD LIBOR, in which it highlights regulatory authorities’ concerns that certain credit sensitive rates (CSRs) currently in use exhibit some of the same inherent “inverted pyramid” weaknesses as LIBOR.

View more...


Other jurisdictions:

  • December 2023: The Euro RFRWG has published minutes of its meeting of 13 November.
  • October 2023: The EUR RFR WG has published an updated version of a Term €STR rates Comparative Table.
  • May 2023: The Working Group on Euro Risk-Free Rates has released Guidance for Corporate Lending Products for Implementing the Recommendations on EURIBOR Fallback Trigger Events and €STR-based EURIBOR Fallback Rates
  • May 2023: The Euro RFRWG released a comparative table of available term €STR rates

View more...

 



General information and materials:

 




Contacts:

Paul Richards
Managing Director, Head of Market Practice and Regulatory Policy; Member of ICMA's Executive Committee  
Direct line: +44 20 7213 0315

Katie Kelly
Senior Director, Market Practice and Regulatory Policy; Secretary to the ICMA Financial Institution Issuer Forum (FIIF) and to the ICMA Corporate Issuer Forum (CIF).
Direct line: +44 20 7213 0331

Other materials

January 2022
ICMSA Bulletin - Synthetic LIBOR, type 1 fallbacks an dealer poll mechanisms

May 2021
ICMSA Bulletin – The role of Calculation Agents and Benchmark Agents/Independent Advisors

January 2021
ICMSA Bulletin on the discontinuation of LIBOR/IBORS – implications for English-law note trustees and agency roles – Update – Legacy Transactions

January 2021
ICMSA Bulletin on the discontinuation of LIBOR/IBORS – operational and procedural considerations for Consent Solicitations and Written Resolutions

June 2020
ICMSA Bulletin on the discontinuation of LIBOR/IBORs – timeline of a consent solicitation

March 2020
ICMSA Bulletin on different approaches for IBOR transition under English law trust deeds and New York law indentures

January 2020
ICMSA Bulletin 200120/47 – Benchmark replacement and fallback provisions – Key principles and guidelines for agents and trustees

18 January 2019
ICMSA Bulletin 190118/45: The discontinuation of LIBOR/IBORS - implications for English-law agency roles

1 November 2018
ICMA and SIX Joint Conference - LIBOR to SARON: Are you ready?
Presentations given at this event are available on the ICMA event webpage.

18 October 2018
ICMSA Bulletin 81018/44: Implications for English law Trustees on discontinuation of LIBOR/IBORs

15 February 2017
ICMA response to the ICE Benchmark Administration Limited Additional Consultation on ICE LIBOR Evolution

31 March 2016
ICMA response to ESMA Discussion Paper on Benchmarks Regulation

29 January 2016
ICMA response to EMMI Consultative Position Paper on the Evolution of Euribor

16 October 2015
ICMA response to the ICE Benchmark Administration Limited Second Position Paper on the Evolution of ICE LIBOR

19 September 2014
ICMA response to the ICE Benchmark Administration Error Policy Consultation

29 November 2013
ICMA response to to ILOC / BBALIBOR Joint Consultation Paper on LIBOR Re-fixing

16 May 2013
ICMA response to IOSCO’s consultation on "Principles for Financial Benchmarks"

11 February 2013
ICMA response to IOSCO’s consultation on "Financial Benchmarks"
ICMA response to ESMA-EBA’s joint consultation on “Principles for Benchmark Setting Processes in the EU”

6 December 2012
ICMA response to the BBA’s consultation on "Strengthening LIBOR"

27 November 2012
ICMA response to the European Commission’s "Consultation Document on the Regulation of Indices"

7 September 2012
ICMA submission in relation to the August 2012 initial discussion paper “The Wheatley Review of LIBOR”




Contacts:

Paul Richards
Managing Director, Head of Market Practice and Regulatory Policy; Member of ICMA's Executive Committee  
Direct line: +44 20 7213 0315

Katie Kelly
Senior Director, Market Practice and Regulatory Policy; Secretary to the ICMA Financial Institution Issuer Forum (FIIF) and to the ICMA Corporate Issuer Forum (CIF).
Direct line: +44 20 7213 0331

Joint trade association materials

20 November 2020
Joint trade association letter regarding the third country transitional provisions of the EU Benchmarks Regulation

20 January 2020
APLMA, ASIFMA, ICMA, ISDA and KPMG held a webcast covering all aspects of LIBOR transition readiness, especially as it pertains to Asia-Pacific jurisdictions. This session focused on issues relevant for buy-side firms and corporate treasurers, such as debt issuance, interest rate derivatives hedging, and debt instruments held by investment managers.

25 June 2018
IBOR Global Benchmark Report 2018
Download the press release

1 February 2018
IBOR Global Benchmark Survey 2018 Transition Roadmap
Download the press release

31 January 2018
Joint trade association letter to the FSB regarding implementation of risk free rates and transition away from LIBOR: key issues for the global financial markets



Minutes of LIBOR Trade Association Working Party Meetings

 



Contacts:

Paul Richards
Managing Director, Head of Market Practice and Regulatory Policy; Member of ICMA's Executive Committee  
Direct line: +44 20 7213 0315

Katie Kelly
Senior Director, Market Practice and Regulatory Policy; Secretary to the ICMA Financial Institution Issuer Forum (FIIF) and to the ICMA Corporate Issuer Forum (CIF).
Direct line: +44 20 7213 0331

ICMA Zurich
T: +41 44 363 4222
Dreikönigstrasse 8
8002 Zurich

ICMA London
T: +44 20 7213 0310
110 Cannon Street
London EC4N 6EU
ICMA Paris
T: +33 1 8375 6613
25 rue du Quatre Septembre
75002 Paris

ICMA Brussels
T: +32 2 801 13 88
Avenue des Arts 56
1000 Brussels
ICMA Hong Kong
T: +852 2531 6592
Unit 3603, Tower 2
Lippo Centre
89 Queensway, Admiralty
Hong Kong
info@icmagroup.org (general enquiries)
education@icmagroup.org (education enquiries)
sustainabilitybonds@icmagroup.org (sustainable finance)
Copyright © 2024 International Capital Market Association.