The overnight and 12-month US dollar LIBOR settings have now permanently ceased, in what the Financial Conduct Authority described as a “critical milestone” in the transition away from the key benchmark interest rate.
The last remaining panel ended on Friday (30 June), the penultimate step in the retirement of LIBOR. Only three synthetic settings will continue to be published, with the 1-, 3- and 6-month US dollar LIBOR settings available for existing contracts until September 2024. The FCA extended the usage of synthetic US dollar LIBOR to September 2024 in April, extending the deadline past its previous end date of June 2023. For 40 years, the London Interbank Offered Rate reflected the cost of lending between banks, using quotes from panels of banks in 35 variants across five currencies. ...
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