International: In 2014, the FSB recommended enhancing existing IBORs and the development and adoption of alternative risk-free rates (RFRs) and several jurisdictions have since established working groups seeking to develop appropriate alternative RFRs. In 2018, various trade associations jointly published a global benchmark transition roadmap highlighting key challenges involved in transitioning from IBORs to alternative RFRs.

LIBOR replacement​: Although LIBOR has been a bedrock of the financial markets for over 30 years, in July 2017 Andrew Bailey, Chief Executive of the UK's Financial Conduct Authority heralded its potential demise, indicating that LIBOR is likely to cease to exist by the end of 2021. In his speech, Andrew Bailey indicated that the FCA's active encouragement has been a significant factor in persuading LIBOR panel banks to continue providing quotes, given a lack of underlying active markets. However after 2021, the FCA will no longer encourage or compel LIBOR panel banks to provide quotes and so the FCA is encouraging the development and transition to alternative reference rates as a priority.​

See LIBOR transi​tion below and our Client Briefing LIBOR – the beginning of the end? for more detail.

National: At a national level, work continues on developing risk free or near risk free rates to replace LIBOR and other similarly structured interbank offered rates.