SFA Supports IBA Proposal on Potential LIBOR Cessation
On Monday, January 25, SFA submitted a response to the ICE Benchmark Administration’s December 2020 consultation entitled, ICE LIBOR Consultation on Potential LIBOR Cessation. SFA’s letter supports a key aspect of the consultation, which is the intention to extend the publication for widely-used USD LIBOR settings (overnight and 1, 3, 6 and 12 months) through June 30, 2023. Further, SFA appreciates the IBA’s proposal to extend the publication for these USD LIBOR settings given the significant prevalence of existing contracts indexed to those rates. Finally, our letter notes two important points for IBA’s consideration: the need for continuation of rate representativeness as well as recognition of the challenges associated with some LIBOR settings ceasing at a different time than others.