November 15, 2022

IBA Announces Plan for Cessation of USD LIBOR ICE Swap Rate

Nick Allen Commentary by Nick Allen

The ICE Benchmark Administration ("IBA") decided to cease publishing USD LIBOR ICE swap rate "runs" for all tenors immediately after publication of the rates on June 30, 2023.

In a feedback statement on a consultation on potential cessation, (see previous coverage), IBA said that it received 13 responses, 12 of which agreed with IBA's decision to cease LIBOR ICE swap rate publication on the intended date. One market participant requested that IBA cease publication of USD LIBOR ICE swap rates on the same date as the central counterparty USD LIBOR swap conversions and opposed any earlier cessation.

Commentary

Though expected, this is welcome news as it affords maximum time until LIBOR ICE Swap Rate's ("LIBOR ISR") discontinuance. Nonetheless, parties should not delay in ensuring that legacy transactions are amended as needed to allow for a rate transition upon LIBOR ISR's discontinuance, whether by adherence to the ISDA Fallbacks Protocol and related Benchmark Module, bilateral amendment or otherwise.

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