ICE Benchmark Administration to Consult On Its Intention to Cease the Publication of GBP, EUR, CHF and JPY LIBOR
Intercontinental Exchange (NYSE:ICE) announces that ICE Benchmark Administration Limited (IBA) will consult on ceasing publication of GBP, EUR, CHF, and JPY LIBOR settings. This decision follows the FCA's July 2017 directive regarding the discontinuation of LIBOR submissions post-December 31, 2021. Although discussions continue regarding USD LIBOR's future, IBA's latest communication indicates no certainty about its continuation. IBA will provide further updates after consultations conclude.
- None.
- Potential discontinuation of widely-used GBP, EUR, CHF, and JPY LIBOR settings post-December 31, 2021.
- Uncertainty surrounding the future of USD LIBOR settings.
- No guarantee that IBA will continue publishing USD LIBOR after the set date.
LONDON--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE Benchmark Administration Limited (IBA) will consult on its intention to cease the publication of all GBP, EUR, CHF and JPY LIBOR settings. Discussions involving IBA, the Financial Conduct Authority (FCA), other official sector bodies and the panel banks are continuing regarding the future of USD LIBOR.
In July 2017, the FCA announced its intention that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. Since then, the FCA and other official sector bodies have strongly advised end-users of the need to transition from LIBOR by December 31, 2021. IBA has engaged with end-users, panel banks, the FCA and other official sector bodies regarding the potential for continuing certain widely-used LIBOR settings after December 31, 2021, where necessary to support transition.
Based on feedback and information received from the panel banks, and following discussions with the FCA and other official sector bodies, IBA will, in the near future, consult on its intention to cease the publication after December 31, 2021, of the following LIBOR settings:
- GBP - all tenors (overnight, 1 week, 1, 2, 3, 6 and 12 months)
- EUR - all tenors (overnight, 1 week, 1, 2, 3, 6 and 12 months)
- CHF - all tenors (spot next, 1 week, 1, 2, 3, 6 and 12 months)
- JPY - all tenors (spot next, 1 week, 1, 2, 3, 6 and 12 months)
Discussions involving IBA, the FCA, other official sector bodies and the panel banks are continuing regarding the future of USD LIBOR. IBA expects to be able to make further announcements regarding USD LIBOR when the discussion process concludes. There can be no certainty or guarantee that IBA will be able to publish any USD LIBOR settings after December 31, 2021.
This press release is not, and must not be taken to be, an announcement that IBA will continue or cease the publication of any LIBOR settings after December 31, 2021. IBA expects to make separate announcements in this regard following the outcome of the consultations, and subject to any rights of the FCA to compel IBA to continue publication.
An FCA statement regarding the use of certain of its proposed new powers can be found here.
About ICE Benchmark Administration
ICE Benchmark Administration is authorized and regulated by the Financial Conduct Authority for the regulated activity of administering a benchmark, and is authorized as a benchmark administrator under the EU Benchmarks Regulation. ICE LIBOR, LIBOR and ICE Benchmark Administration are registered trademarks of IBA and/or its affiliates.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 6, 2020.
Source: Intercontinental Exchange
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