The UK's Financial Conduct Authority (FCA) has released its last message before the end of March 2024 deadline and reminded that the US dollar synthetic LIBOR (Sterling London Interbank Offered Rate) is expected to be discontinued by the end of September 2024.。

There is now one month to go until March 28, 2024, when the 3-month synthetic LIBOR setting will be permanently terminated, which is the last remaining synthetic LIBOR setting, and its end marks another important milestone in the transition from IBOR.。

In November 2022, the FCA announced its intention to continue to require IBA to publish LIBOR in synthetic form for three months until the end of March 2024, after which it will be permanently discontinued.。This is in line with the feedback received from the June 2022 consultation。

Firms with unexpired LIBOR exposures must continue active transition work prior to the deadline。The FCA also reminded market participants that US dollar synthetic LIBOR is expected to be discontinued after seven months.。

In November 2022, the FCA consulted on proposals for synthetic dollar IBOR。In April 2023, the regulator confirmed its intention to require the IBA to continue publishing 1-month, 3-month and 6-month dollar IBOR settings in synthetic form until the end of September 2024.。

Market participants must ensure that they are prepared for the cessation of these final synthetic dollar IBOR settings at the end of September 2024.。Contractual parties that still refer to IBOR should take steps to transition to a robust, appropriate reference rate and renegotiate with counterparties if necessary。