The transition from LIBOR to overnight risk-free rates (RFRs) and efforts made to improve the robustness of interest rate benchmarks have increased market stability and integrity. Most LIBOR settings have now ceased and, while certain panel-based US dollar settings are continuing until end-June 2023 to support the transition of legacy contracts, the market has already shifted new activity away from LIBOR and toward RFRs.

This progress report on LIBOR and other benchmark transition issues:

  • provides an overview of LIBOR transition efforts, covering success to date and remaining transition steps, including anchoring the financial system in overnight RFRs;

  • provides updates from member jurisdictions on other benchmark transition efforts;

  • presents findings from the FSB’s follow-up questionnaire on supervisory issues related to LIBOR transition;

  • sets out conclusions and next steps.

The FSB encourages authorities and market participants alike to keep momentum for the last stage of transition and going forward to rely on benchmark rates that have a strong reference foundation, which means anchoring the financial system in overnight RFRs. Extensively used benchmarks should be especially robust and reflect credible, liquid underlying markets. This will avoid the need to repeat the transition effort experienced by the global financial community in transitioning away from LIBOR.