11.16.21
On November 16, the Financial Conduct Authority (FCA) announced it will permit the temporary use of a synthetic version of the LIBOR benchmark rate for legacy contracts using sterling and yen. Specifically, the FCA is only allowing the publication of 1-, 3-, and 6-month rates of these currencies on a synthetic basis until the end of 2022, to allow more time to complete the transition. However, these synthetic rates will not be available for use in any new contracts. This follows the FCA’s decision from September 2021 on a fair, transparent and appropriate way of calculating synthetic LIBOR, approximating what LIBOR might have been in the future.