FCA confirms no chance of further Libor extension as September deadline approaches

There are three months to go for the remaining synthetic US dollar Libor settings.

The UK’s Financial Conduct Authority (FCA) today issued a reminder of the expected cessation of the remaining synthetic US dollar LIBOR settings in late September 2024. 

With three months to go until the Libor transition deadline the watchdog has confirmed that is has no intention to use its powers to compel the ICE Benchmark Administration Limited (IBA) to continue to publish the settings beyond September.

Speaking last April, when the official extension of the expiration deadline was announced, the FCA asserted: “Firms must therefore continue to actively transition contracts that reference US dollar Libor. We continue to expect firms to take action and deliver demonstrable progress.

“Synthetic Libor is only a temporary bridge, and synthetic settings will not continue simply for the convenience of those who could have transitioned their contracts but have not done so.”

The 1-, 3- and 6-month synthetic US dollar LIBOR settings are set to cease after publication on Monday 30 September 2024 specifically. 

Read more: FCA extends expiration deadline of synthetic US dollar Libor to September 2024

“Their cessation will mark the final milestone in the transition away from Libor […] Parties to contracts still referencing US dollar LIBOR should be taking steps to transition to appropriate, robust reference rates, renegotiating with counterparties where necessary,” concluded the watchdog.