The ICE Benchmark Administration (IBA) has published its latest issue of the London Interbank Offered Rate (LIBOR) Code of Conduct (the Code) for contributing banks.

The Code sets out the practice standards adopted by ICE Benchmark Administration Limited for benchmark submitters to ICE LIBOR.

The Code provides a framework within which contributing banks should operate and assists users in deciding whether LIBOR is an appropriate benchmark to use in contracts. The Code also sets out the responsibilities of the Benchmark Administrator and its Oversight Committee. Whilst the Code summarises the relevant FCA rules in places, firms should refer to the FCA Handbook for the FCA rules themselves.

The FCA has issued rules governing benchmark setting by adding chapter 8 to its Market Conduct sourcebook (MAR). MAR 8.2 and MAR 8.3 contain the provisions for benchmark submitters and benchmark administrators, respectively.

The Code is FCA confirmed industry guidance.

The Code has been updated following the issue by the IBA in March 2016 of a Roadmap that is intended to deliver a seamless transition to a more robust benchmark which will make LIBOR more sustainable for the long term. In order to anchor LIBOR to the greatest extent possible in transactions, as well as reflect changes in banks’ funding models, the IBA designed a waterfall of submission methodologies to ensure that LIBOR panel banks use funding transactions where available. This latest issue of the Code (issue 4) supersedes issue 3 and applies to a contributing bank from the date on which it transitions to the Roadmap methodology. Issue 2 of the Code applies to contributing banks before they transition to the Roadmap methodology. When all contributing banks have transitioned to the Roadmap methodology, issue 2 of the Code will be withdrawn.

View ICE Benchmark Administration releases revised LIBOR code of conduct, 17 March 2017