FCA confirms use of synthetic LIBOR for six settings with little change to initial proposal

Japanese yen LIBOR to end in 2022

The Financial Conduct Authority has confirmed the use of a synthetic LIBOR rate for six settings across sterling and Japanese yen, following a consultation with financial institutions.

From 1 January 2022, all LIBOR settings excluding 1-, 3- and 6-month sterling and Japanese yen and five US dollar settings will cease, with the former transferring to a synthetic model, while the latter will continue to be calculated by panel bank submission until the end of June 2023. Act now on LIBOR transition: IA's stark warning to FTSE 350 bosses Japanese yen and sterling settings will not be available for use in any new contracts and the regulator continues to encourage the industry to move away from LIBOR rates as soon as possible. The extension has been granted in order to ...