Intercontinental Exchange, Inc. (NYSE:ICE) today announced that ICE Benchmark Administration Limited (IBA), the authorized and regulated administrator of LIBOR, has provided an update regarding the cessation of sterling LIBOR.

In line with feedback from its June 2022 consultation and previous statements, the U.K. Financial Conduct Authority (FCA) has used its powers under the U.K. Benchmarks Regulation (U.K. BMR) to require IBA to publish the 3-Month sterling LIBOR setting using an unrepresentative “synthetic” methodology until March 28, 2024.

The FCA has stated that it has no intention to require publication beyond then and that this setting will cease after publication on that date.

IBA is also currently required by the FCA to continue to publish the 1-, 3- and 6-Month “synthetic” U.S. dollar LIBOR settings. The FCA has stated that it intends to require IBA to publish these settings until September 30, 2024, but not beyond that date, when it expects publication to cease.

All other LIBOR settings have ceased to be published. “Synthetic” LIBOR settings that are required to be published under a “synthetic” methodology are not representative of the underlying market or economic reality the setting was intended to measure prior to such requirement.

The use of “synthetic” LIBOR settings by U.K. supervised entities is prohibited under the U.K. BMR, subject to the FCA permitting use by U.K. supervised entities in legacy contracts other than cleared derivatives.

Users of LIBOR settings should take appropriate legal and regulatory advice in all relevant jurisdictions to ensure they understand and are prepared for the impact of the cessation or unrepresentativeness of any LIBOR settings on them and their counterparties under any applicable legislation or regulation, financial contracts, financial instruments and other arrangements.