LIBOR Transition and Replacement Rate solutions

The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. LIBOR serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks.

As of 5 March 2021, the FCA announced that LIBOR cessation will take place between the end of 2021 and mid-2023. The financial services industry is migrating away from LIBOR benchmarks towards new risk-free rates (RFRs). ​

Regulators and central banks have announced and released a series of overnight RFRs such as Sterling Over Night Index Average (SONIA) in the UK, Secured Overnight Financing Rate (SOFR) in the U.S. and Euro Short-Term Rate (€STR) in the euro area.​

While much of the market is expected to adopt these overnight RFRs administered by central banks, pockets of demand for term rate benchmarks based on RFRs for loans and other cash products remain.​

Central banks will not provide term RFRs, but benchmark administrators, including Refinitiv, are developing such products.​

Market participants should act now and have appropriate plans in place to manage this transition in line with the end of 2021 deadline. Refinitiv provides new data that will help you transition away from LIBOR to alternative rates and provides tools to support decision making in the transition process.

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