ICE Benchmark Administration Provides Update Regarding the Cessation of Sterling LIBOR®

LONDON--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that ICE Benchmark Administration Limited (IBA), the authorized and regulated administrator of LIBOR^®, has provided an update regarding the cessation of sterling LIBOR.

In line with feedback from its June 2022 consultation and previous statements, the U.K. Financial Conduct Authority (FCA) has used its powers under the U.K. Benchmarks Regulation (U.K. BMR) to require IBA to publish the 3-Month sterling LIBOR setting using an unrepresentative “synthetic” methodology until March 28, 2024. The FCA has stated that it has no intention to require publication beyond then and that this setting will cease after publication on that date.

IBA is also currently required by the FCA to continue to publish the 1-, 3- and 6-Month “synthetic” U.S. dollar LIBOR settings. The FCA has stated that it intends to require IBA to publish these settings until September 30, 2024, but not beyond that date, when it expects publication to cease.

All other LIBOR settings have ceased to be published. “Synthetic” LIBOR settings that are required to be published under a “synthetic” methodology are not representative of the underlying market or economic reality the setting was intended to measure prior to such requirement.

The use of “synthetic” LIBOR settings by U.K. supervised entities is prohibited under the U.K. BMR, subject to the FCA permitting use by U.K. supervised entities in legacy contracts other than cleared derivatives.

Users of LIBOR settings should take appropriate legal and regulatory advice in all relevant jurisdictions to ensure they understand and are prepared for the impact of the cessation or unrepresentativeness of any LIBOR settings on them and their counterparties under any applicable legislation or regulation, financial contracts, financial instruments and other arrangements.

Please see IBA’s LIBOR webpage and the FCA’s LIBOR transition webpage for further information.

About ICE Benchmark Administration

ICE Benchmark Administration Limited is authorized and regulated by the Financial Conduct Authority for the regulated activity of administering a benchmark and is authorized as a benchmark administrator under the U.K. Benchmarks Regulation. LIBOR and ICE Benchmark Administration are registered trademarks of ICE Benchmark Administration Limited and/or its affiliates.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.

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Category: EXCHANGES

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Source: Intercontinental Exchange