ICE Benchmark Administration to consult on ceasing publication of Libor  

The ICE benchmark administrator will consult on intentions to stop publication of all GBP, EUR, CHF, and JPY Libor settings after December next year.

ICE Benchmark Administration (IBA) has unveiled plans to consult on its intention to cease publication of a majority of Libor interest rates after 31 December 2021.

In a statement, IBA said the consultation will discuss its possible ceasing of the publication for sterling, euro, Swiss franc, and Japanese yen Libor settings after December next year.  

IBA added that discussions with the UK’s Financial Conduct Authority (FCA) and other official sector bodies and panel banks are ongoing regarding the future of US dollar Libor.   

“IBA expects to be able to make further announcements regarding USD LIBOR when the discussion process concludes. There can be no certainty or guarantee that IBA will be able to publish any USD LIBOR settings after December 31, 2021,” IBA said

The FCA confirmed in July 2017 that it would no longer  support banks using Libor after 31 December 2021, following years of controversy and allegations that the benchmark had been manipulated. Around 20 major banks have been caught up in investigations or fined for rigging Libor.

Market participants across the value chain have begun transitioning to alternative benchmarks SONIA and SOFR. In August, Eurex cleared its first SOFR swaps with JP Morgan and LBBW.

Similarly, in September, LCH registered its first SONIA/SOFR cross-currency swap between Bank of America and Lloyds Bank. More recently in October, ICE outlined plans to launch SONIA options through ICE Futures Europe later this year.

Earlier this month, the first electronic SOFR versus EFFR basis swap compression was executed via Bloomberg’s list trading tool on CME group.