Additional time is intended to make the long-decided changeover easier for poorly prepared market participants.
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The prolonged demise of the US dollar Libor represents an abrupt change of course by the regulatory authorities. In the picture: The financial district of London.
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The end of the London Interbank Offered Rate (Libor), which is used worldwide for financial instruments such as bonds, loans, swaps and other derivatives, is a matter that was decided in the summer of 2017. But the demise of the US dollar Libor, the member of the Libor family most frequently used by financial institutions around the world, has been postponed: The dollar rate management company, ICE Benchmark Administration Ltd (IBA), is putting the plans up for discussion Cease calculation and publication of the shortest dollar rates (1 week, 2 months) after the end of 2021 and the other “tenors” (1, 3, 6 and 12 months) after June 2023. Consultations are also planned for the other currencies (pound sterling, euro, franc and yen).
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