FCA confirms no likelihood of additional Libor extension as September cut-off date approaches

The United Kingdom’s Monetary Habits Authority (FCA) lately issued a reminder of the predicted cessation of the remainder artificial US greenback LIBOR settings in overdue September 2024. 

With 3 months to move till the Libor transition cut-off date the watchdog has showed this is has no aim to make use of its powers to compel the ICE Benchmark Management Restricted (IBA) to proceed to submit the settings past September.

Talking ultimate April, when the respectable extension of the expiration cut-off date used to be introduced, the FCA asserted: “Companies should subsequently proceed to actively transition contracts that reference US greenback Libor. We proceed to be expecting companies to do so and ship demonstrable growth.

“Artificial Libor is just a brief bridge, and artificial settings won’t proceed merely for the ease of those that can have transitioned their contracts however have no longer executed so.”

The 1-, 3- and 6-month artificial US greenback LIBOR settings are set to stop after e-newsletter on Monday 30 September 2024 particularly. 

Learn extra: FCA extends expiration cut-off date of artificial US greenback Libor to September 2024

“Their cessation will mark the general milestone within the transition clear of Libor […] Events to contracts nonetheless referencing US greenback LIBOR must be taking steps to transition to suitable, tough reference charges, renegotiating with counterparties the place vital,” concluded the watchdog.