The Bank of England has published a
joint press release with the Financial Conduct Authority and the Working Group on Sterling Risk-Free Reference Rates (Working Group) on the end of LIBOR. On September 30, 2024, the remaining synthetic LIBOR settings were published for the last time. All 35 LIBOR settings have now permanently ceased and the Working Group has been wound down effective on October 1, 2024. Moving forward, market participants are encouraged to continue to ensure they use the most robust rates for the relevant currency, such as SONIA for GBP and SOFR for USD. Market participants should ensure their use of term risk-free reference rates, such as term SONIA and term SOFR, are limited and comply with the best practice guidance. Market participants are reminded that credit sensitive rates should not emerge as successor rates, because they are not robust or suitable for widespread use as a benchmark. In particular, USD credit sensitive rates have the potential to reintroduce many of the financial stability risks associated with LIBOR.
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