Intercontinental Exchange, Inc a global leader in technology and data services, has announced that ICE Benchmark Administration Limited (IBA), the authorized administrator of LIBOR®, has issued an update regarding the cessation of U.S. dollar LIBOR®.
Consistent with previous communications, the U.K. Financial Conduct Authority (FCA) has exercised its authority under the U.K. Benchmarks Regulation (U.K. BMR) to require IBA to continue publishing the 1-, 3- and 6-Month “synthetic” U.S. dollar LIBOR settings using an unrepresentative methodology until September 30, 2024.
The FCA has clarified that it does not intend to mandate publication beyond this date and has emphasized that these final three LIBOR settings will cease after their publication on Monday, September 30, 2024. There are no plans for new LIBOR settings to be introduced thereafter.
The “synthetic” LIBOR settings, which are now mandated, do not accurately reflect the market conditions or economic reality that the original LIBOR settings were designed to measure. Under the U.K. BMR, the use of these “synthetic” LIBOR settings by supervised entities in the U.K. is restricted, except in legacy contracts other than cleared derivatives where permitted by the FCA.
Market participants relying on LIBOR are advised to seek appropriate legal and regulatory guidance across relevant jurisdictions to understand and prepare for the implications of the cessation of these remaining “synthetic” LIBOR settings on their contracts, financial instruments, and other arrangements.
For further details, please refer to IBA’s LIBOR webpage and the FCA’s LIBOR transition webpage.
About ICE Benchmark Administration
ICE Benchmark Administration Limited is authorized and regulated by the Financial Conduct Authority to administer benchmarks and is recognized as a benchmark administrator under the U.K. Benchmarks Regulation. LIBOR and ICE Benchmark Administration are trademarks of ICE Benchmark Administration Limited and/or its affiliates.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that builds and operates digital networks connecting individuals to opportunities. ICE offers financial technology and data services across major asset classes, facilitating access to essential workflow tools that enhance transparency and efficiency. Through its exchanges and clearing houses, including the New York Stock Exchange, ICE supports investment, capital raising, and risk management worldwide. ICE’s markets for energy, environmental products, futures, equities, and options are among the largest globally. Additionally, ICE Mortgage Technology revolutionizes U.S. housing finance from initial engagement through loan servicing. ICE transforms industries by automating processes and enabling connectivity to opportunities for its customers.
Intercontinental Exchange, ICE, ICE block design, NYSE, and New York Stock Exchange are trademarks of ICE and/or its affiliates. Additional information on trademarks and intellectual property rights of Intercontinental Exchange, Inc. and its affiliates can be found here. Key Information Documents for certain products under the EU Packaged Retail and Insurance-based Investment Products Regulation are available on relevant exchange websites under “Key Information Documents (KIDS).”
Safe Harbor Statement
This press release contains forward-looking statements regarding ICE’s business, which involve risks and uncertainties. Actual results may differ materially from those contained in these forward-looking statements. For a discussion of risks and uncertainties that could impact actual results, refer to ICE’s Securities and Exchange Commission (SEC) filings, including the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 8, 2024, and subsequent filings.
