On Nov. 18, 2020, the ICE Benchmark Administration (“IBA”), which is the administrator of LIBOR authorized and regulated by the Financial Conduct Authority (“FCA”), announced that it will consult on its intention that the euro, sterling, Swiss franc and yen LIBOR panels would, subject to confirmation following IBA’s consultation, cease at the end of 2021. Discussions between panel banks, the FCA and IBA regarding the future of USD LIBOR are still in process.
In a separate statement, the FCA acknowledged this announcement and set out its potential approach for the wind down of LIBOR and use of proposed new powers under the Financial Services Bill.
Lastly, the International Swaps and Derivatives Association Inc. (“ISDA”) has published a statement noting that neither of the IBA or FCA statements constitutes an index cessation event under ISDA’s IBOR Fallbacks Supplement or ISDA 2020 IBOR Fallbacks Protocol. ISDA notes that the statements will therefore not trigger the fallbacks or have any effect on the calculation of the spread. ISDA further notes that these statements will also not trigger fallbacks under the 2018 ISDA Benchmarks Supplement or its protocol.