U.K. Financial Conduct Authority Announces Cessation of One and Six Month “synthetic” Sterling LIBOR at the end of March 2023
September 29 2022 - 6:27AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of data, technology, and market infrastructure, today
announced that the U.K. Financial Conduct Authority (FCA) has
decided to require ICE Benchmark Administration Limited (IBA) to
continue to publish 1- and 6-Month “synthetic” sterling LIBOR
settings until March 31, 2023.
The FCA has announced that, following the results of a
consultation, it has no intention to use its powers to compel IBA
to continue to publish the 1- and 6-Month “synthetic” sterling
LIBOR settings beyond this date, and that therefore these settings
will permanently cease immediately after final publication on March
31, 2023.
The FCA also consulted on when it could cease to compel IBA to
publish 3-Month “synthetic” sterling LIBOR and noted there was
support for requiring the continuation of 3-Month “synthetic”
sterling LIBOR for a limited period beyond the end of March 2023.
The FCA is considering the appropriate date for such cessation in
light of the feedback received, and will provide further
information when it publishes its summary of feedback on that
question.
The publication of all Swiss franc and euro LIBOR settings, the
1 Week and 2 Month U.S. dollar LIBOR settings, and the
Overnight/Spot Next, 1 Week, 2 Month and 12 Month sterling and
Japanese yen LIBOR settings permanently ceased after December 31,
2021. The FCA has compelled IBA to publish the 1-, 3- and 6-Month
sterling and Japanese yen settings for the duration of 2022 using a
changed, unrepresentative “synthetic” methodology. The FCA has
stated that the “synthetic” JPY LIBOR settings will cease at the
end of 2022.
Publication of the Overnight and the 1-, 3-, 6- and 12-Month
U.S. dollar LIBOR settings currently continues using panel bank
contributions under the “panel bank” LIBOR methodology. IBA expects
to continue to determine and publish these settings on this basis
until the end of June 2023, at which point panel banks will stop
contributing and the Overnight and 12-Month U.S. dollar LIBOR
settings will permanently cease. The FCA has stated that it will
consider the case for requiring continued publication of the 1-,
3-, and 6-Month U.S. dollar LIBOR settings using an
unrepresentative, “synthetic” methodology after June 2023. As part
of its consultation, the FCA sought information relating to U.S.
dollar LIBOR exposures that might persist beyond the end of June
2023, and information to help it assess the case for, and
consequences for market participants of, a decision to compel IBA
to produce “synthetic” U.S. dollar LIBOR for a limited period. The
FCA is assessing the feedback received and plans to respond later
in the Autumn of 2022.
Please see IBA’s LIBOR webpage and the FCA’s LIBOR transition
webpage for further information.
About ICE Benchmark Administration
ICE Benchmark Administration is authorized and regulated
by the Financial Conduct Authority for the regulated activity of
administering a benchmark, and is authorized as a benchmark
administrator under the UK Benchmarks Regulation. ICE, LIBOR, and
ICE Benchmark Administration are registered trademarks of IBA
and/or its affiliates.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate
exchanges, including the New York Stock Exchange, and
clearing houses that help people invest, raise capital and
manage risk across multiple asset classes. Our comprehensive fixed
income data services and execution capabilities provide
information, analytics and platforms that help our customers
capitalize on opportunities and operate more efficiently. At ICE
Mortgage Technology, we are transforming and digitizing the
U.S. residential mortgage process, from consumer engagement through
loan registration. Together, we transform, streamline and automate
industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2021, as
filed with the SEC on February 3, 2022.
Category: Exchanges
ICE- CORP
Source: Intercontinental Exchange
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ICE Media Contact: Rebecca Mitchell
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Contact: Katia Gonzalez katia.gonzalez@ice.com (678)
981-3882
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