BBA Confirms Phased Discontinuation of Certain LIBOR Rates (with Lofchie Comment)

The British Banking Association has confirmed that it will be reducing the number of LIBOR rates which are published daily from over 150 down to 37 by June 2013. The move was one of many recommended in the Wheatley Review of LIBOR, and follows the results of a public consultation exercise on the issue. The timeline for the changes will be as detailed in the Association's Feedback Statement of December 14, 2012.

Lofchie Comment: Firms should survey their derivatives and lending documentation and determine what agreements will be impacted by the discontinuance. Additionally, firms should consider stopping as soon as practicable the use of any LIBOR measures that will be discontinued as the use of these measures is likely to become thinner over time.