Article 23a Benchmarks Regulation – Notice of Designation [pdf]

Following its decision to continue the publication of the 1-, 3- and 6-month US dollar LIBOR settings on a synthetic basis beyond June 30, 2023 (please see EventID 20544 for more information), the Financial Conduct Authority (FCA) has designated these LIBOR tenors as critical benchmarks pursuant to article 23A of the Retained Benchmark Regulation (UK BMR). This step is necessary so that the FCA can exercise its powers under article 23D of the UK BMR to change the tenors‘ computation methodology to an unrepresentative, synthetic one. Only that way can the benchmark administrator, ICE Benchmark Administration Limited (IBA), continue to provide the synthetic LIBOR versions following the discontinuation of „real“ LIBOR input data by contributing banks (panel banks).
As a consequence, the FCA has now published a corresponding notice of designation which was sent to IBA on April 3, 2023 and which will be effective July 1, 2023.