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End of LIBOR looming

4 June 2021

On 2 June 2021, the Financial Stability Board (FSB) announced that all new use of LIBOR benchmarks should cease as soon as practicable.

The FSB also released:

  • an updated Global Transition Roadmap for LIBOR incorporating the confirmed LIBOR cessation dates and transition milestones set across the different LIBOR jurisdictions
  • a statement encouraging the adoption of overnight risk-free rates where appropriate, rather than waiting for the development of additional tools, in particular forward-looking term risk-free rates
  • a statement supporting the use of the ISDA spread adjustments in cash products.

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