On 30 November 2020, ICE Benchmark Administration (IBA), the FCA-regulated and authorised administrator of LIBOR, announced that it will consult in early December on its intention to cease US$ LIBOR. IBA intends that, subject to confirmation following its consultation, one week and two month US$ LIBOR settings will cease at end-2021, and that the US$ LIBOR panel will cease at end-June 2023. The IBA’s announcement follows an earlier announcement to consult on its intention that the euro, sterling, Swiss franc and yen LIBOR panels would cease at end-2021.

The FCA has also issued a statement welcoming the consultation on a clear end date to the US$ LIBOR panel, following discussions with the US$ LIBOR panel banks. The FCA also welcomes the supervisory guidance in relation to limiting new use of US$ LIBOR after end-2021 from the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. The FCA states that it will coordinate with the US authorities, and relevant authorities in other jurisdictions, to consider whether and, if so, how most appropriately to limit new use of US$ LIBOR, consistent with its objectives of protecting consumers and market integrity.

ISDA has also issued a statement on the IBA announcement. The ISDA states that none of the statements constitute an index cessation event under the IBOR Fallbacks Supplement or the ISDA 2020 IBOR Fallbacks Protocol. Therefore, these statements will not trigger the fallbacks under the supplement or protocol (i.e., to the adjusted risk-free rate plus spread) or have any effect on the calculation of the spread. These statements will also not trigger fallbacks under the 2018 ISDA Benchmarks Supplement or its protocol.