On November 30, 2020, the financial markets experienced a coordinated and multijurisdictional initiative to reset the course of U.S. dollar LIBOR transition. The administrator of LIBOR, ICE Benchmark Administration (IBA), announced that it would consult on ceasing to determine one-week and two-month U.S. dollar LIBOR with effect from the previously-announced December 31, 2021 deadline but – and this is very significant - ceasing to determine the remaining U.S. dollar LIBOR tenors on June 30, 2023. This announcement coincided with an announcement by ISDA that the IBA announcement was not a triggering event which would set the spread to be used in its derivative contracts as part of the risk-free rate determination process.
The U.S. Federal Reserve Board, the OCC, and FDIA lauded the announcement at the same time as clarifying that the extension was only of relevance for legacy U.S. dollar LIBOR-based contracts. The coordinated initiative also saw the UK’s Financial Conduct Authority (FCA) state that the announcement did not mean that any LIBOR rate was unrepresentative.