U.K. Financial Conduct Authority Publishes Consultation on “Synthetic” U.S. Dollar LIBOR and Announces Intention that 3-Month “Synthetic” Sterling LIBOR will be Published Until End of March 2024
November 23 2022 - 8:00AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of data, technology, and market infrastructure, today
noted that the U.K. Financial Conduct Authority (FCA) has published
a consultation on a proposal to require ICE Benchmark
Administration Limited (IBA), the administrator of LIBOR, to
publish 1-, 3- and 6-month U.S. dollar LIBOR settings under an
unrepresentative “synthetic” methodology after the end of June 2023
until the end of September 2024, and that the FCA intends to
require IBA to continue to publish the 3-month “synthetic” sterling
LIBOR setting until the end of March 2024.
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.
In light of feedback received in respect of its June
consultation, the FCA is consulting on using its powers under the
U.K. Benchmarks Regulation to compel IBA to continue to publish the
1-, 3- and 6-month U.S. dollar LIBOR settings under an
unrepresentative “synthetic” methodology for a temporary period
after the end of June 2023 until the end of September 2024. The
consultation also seeks views on the proposed methodology the FCA
would require IBA to use to determine “synthetic” U.S. dollar LIBOR
and on which legacy use of “synthetic” U.S. dollar LIBOR the FCA
should permit. The consultation will remain open until January 6,
2023, and the FCA expects to announce its decision in late Q1 or
early Q2 2023.
Further to the FCA’s announcement on September 29, 2022 that it
had decided to require IBA to continue to publish 1- and 6-month
“synthetic” sterling LIBOR settings until March 31, 2023, and in
line with feedback from its consultation, the FCA has stated that
it intends to require IBA to continue to publish the 3-month
“synthetic” sterling LIBOR setting until the end of March 2024,
after which this setting will permanently cease.
The FCA has previously stated that the “synthetic” Japanese yen
LIBOR settings will cease at the end 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
Rebecca.Mitchell@ice.com +44 7951 057 351
ICE Investor Contact: Katia Gonzalez
katia.gonzalez@ice.com (678) 981-3882
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