ICE Benchmark Administration Publishes Feedback Statement for the Consultation on Its Intention to Cease the Publication of L...
05 March 2021 - 6:09PM
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, announced that ICE
Benchmark Administration Limited (IBA), the authorized and
regulated administrator of LIBOR®, has today published a feedback
statement for the consultation on its intention to cease the
publication of LIBOR® settings.
On December 4, 2020, following discussions with the Financial
Conduct Authority (FCA) and other official sector bodies, and in
accordance with procedures adopted pursuant to the UK Benchmarks
Regulation, IBA published a consultation on its intention to cease
the publication of:
(i) all GBP, EUR, CHF and JPY LIBOR settings,
and the 1 Week and 2 Month USD LIBOR settings immediately following
the LIBOR publication on December 31, 2021; and
(ii) the Overnight and 1, 3, 6 and 12 Month
USD LIBOR settings immediately following the LIBOR publication on
June 30, 2023.
IBA consulted on these intended cessation dates because a
majority of LIBOR panel banks had communicated to IBA that they
would not be willing to continue contributing to the relevant LIBOR
settings after such dates. As a result, IBA considered that it
would be unable to publish the relevant LIBOR settings on a
representative basis after such dates.
IBA received a broad of range of feedback from multiple
stakeholders, both on the dates specified above and on the LIBOR
transition process generally, including on matters beyond IBA’s
remit as administrator of LIBOR. IBA has shared and discussed this
feedback with the FCA. Further information on the feedback received
is available in IBA’s consultation feedback statement.
In the absence of sufficient panel bank support and without the
intervention of the FCA to compel continued panel bank
contributions to LIBOR, it is not possible for IBA to publish the
relevant LIBOR settings on a representative basis beyond the dates
specified above for such settings. As a result of IBA not having
access to input data necessary to calculate LIBOR settings on a
representative basis beyond the dates specified above for such
settings, IBA has to cease the publication of the relevant LIBOR
settings on such dates, unless the FCA exercises its proposed new
powers (which are included in the current Financial Services Bill
as proposed amendments to the UK Benchmarks Regulation) to require
IBA to continue publishing such LIBOR settings using a changed
methodology (also known as a “synthetic” basis).
The FCA has advised IBA that it has no intention of using its
proposed new powers to require IBA to continue the publication of
any EUR or CHF LIBOR settings, or the Overnight/Spot Next, 1 Week,
2 Month and 12 Month LIBOR settings in any other currency, beyond
the above intended cessation dates for such settings. The FCA has
also advised IBA that it will consult on using these proposed new
powers to require IBA to continue the publication on a “synthetic”
basis of the 1 Month, 3 Month and 6 Month GBP and JPY LIBOR
settings beyond such dates, and will continue to consider the case
for using these proposed powers in respect of the 1 Month, 3 Month
and 6 Month USD LIBOR settings.
The FCA has confirmed to IBA that, based on undertakings
received from the panel banks, it does not expect that any LIBOR
settings will become unrepresentative before the above intended
cessation dates for such settings.
Stakeholders who are interested as to statements relating to the
cessation or unrepresentativeness of LIBOR for the purpose of
contractual triggers for fallback rate arrangements should see the
FCA statement issued earlier today.
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 UK 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 here. 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, 2020, as
filed with the SEC on February 4, 2021.
Source: Intercontinental Exchange
ICE-CORP
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ICE Media Contact Rebecca Mitchell +44 7951 057351
rebecca.mitchell@theice.com
ICE Investor Contact Warren Gardiner 770-835-0114
Warren.Gardiner@theice.com
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