LIBOR meaning

STOP PRESS The Loan Market Association (LMA) has released refreshed editions of the standard terms and conditions for Par and Distressed Trade Transactions, the complete set of Funded Participation and Risk Participation Agreements, and the Secondary Debt Trading Documentation User Guide, with effect from 17 March 2026. The changes remove LIBOR references, update IBOR rate definitions and the Target2 definition, and revise ERISA representations to incorporate additional exemptions to the prohibited transaction rules under ERISA and the US Internal Revenue Code. The revised documentation is available exclusively to LMA members, accessible via the LMA’s Documentation Hub. These publications are updated versions issued by the LMA. Summary A core principle of trading under the LMA protocol is that ‘Trade is a Trade’; i.e. once a trade is struck—including an oral contract agreed by telephone—it is binding, and subsequent developments, even if adverse to one or both parties, do not entitle either party to cancel or ‘break’ the trade. By way of example, a failure to secure consent for...

Timeline of key developments for Assimilated Regulation (EU) 2016/1011 (the UK Benchmarks Regulation) This timeline outlines major developments concerning Assimilated Regulation (EU) 2016/1011 (the UK Benchmarks Regulation) from January 2024 onwards. For prior developments, see Benchmarks Regulation—timeline [Archived] 2025 17 December 2025 — HMT; FCA Open consultation: Future regulatory regime for benchmarks and benchmark administrators Consultation [PDF]; FCA welcomes reform to the UK Benchmarks Regulation HM Treasury (HMT) has opened a consultation on the Specified Authorised Benchmark Regime (SABR), a wholly new benchmarks framework intended to replace the UK Benchmarks Regulation, regulating only those benchmarks or benchmark administrators that could present systemic risks to UK financial markets. HMT anticipates that SABR could shrink the population of benchmark administrators within scope by roughly 80 to 90 per cent. Under SABR, HMT would designate in-scope benchmarks and benchmark administrators, acting on advice from the Financial Conduct Authority (FCA). All other benchmarks, and administrators supplying benchmarks in the UK,...

This Checklist This Checklist presents, in a tabular format, the matters to address when preparing a loan that references a compounded risk-free rate (RFR) such as the Sterling Overnight Interbank Average Rate (SONIA), calculated in arrears. It explains the purpose of the key provisions, highlights issues to weigh up, and offers drafting pointers and practical guidance for practitioners. For further analysis, see Practice Note: Interest provisions in risk-free rate based loan agreements. The Checklist draws on provisions contained in the Multicurrency Term and Revolving Facilities Agreement incorporating backward-looking compound rates and forward looking term rates (lookback without observation shift) issued by the LMA (the LMA Compounded RFR Facilities Agreement). The LMA’s recommended form documentation, with accompanying user guides and commentary, is accessible to LMA members on its website. While the Checklist is prepared on the basis of LMA-style documentation, the guidance will also be relevant to bilateral transactions and agreements using other loan forms. Practice Note: Interest provisions in risk-free rate based loan agreements provides a fuller discussion and...

In this issue: Decision to prosecute and alternatives to prosecution Criminal procedure and evidence Proceeds of crime Appeals and judicial review Sentencing Bribery, corruption, sanctions and export controls Cybercrime and data protection offences Fraud, forgery, tax and theft offences Health and safety and corporate manslaughter offences Other corporate crime updates LexTalk®Corporate Crime: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Decision to prosecute and alternatives to prosecution Deferred Prosecution Agreements—an ‘expiry date’ or a ‘best before’? (Guralp Systems Ltd v Serious Fraud Office) The statutory framework for Deferred Prosecution Agreements (DPAs) requires an expiry date within every DPA, mandates that any breach application is made while the DPA remains in force, and provides that where a DPA lasts until its expiry, the proceedings are to be discontinued. In this case, the DPA’s terms specified effectiveness for...

In this issue: Investigating criminal conduct Criminal procedure and evidence Proceeds of crime Sentencing Bribery, corruption, sanctions and export controls Consumer protection and cartels Cybercrime and data protection offences Environmental offences Financial services and pensions offences Health and safety and corporate manslaughter offences Insolvency offences and Companies Act offences Money laundering International Other corporate crime news Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Investigating criminal conduct Standards of candour in closed hearings, and corporate witness statements (Attorney General v BBC; R (‘Beth’) v IPT) When scrutinising MI5’s actions across two High Court cases, the court addressed the grave consequences of presenting inaccurate material within closed hearings. It outlined the tightly confined situations that can justify a departure from open justice under section 6 of the Justice and Security Act 2013 (JSA 2013). The court further...

In this issue: Sustainable finance and ESG weekly round-up Moveable Transactions (Scotland) Act 2023 Football Governance Bill LIBOR and benchmarks Sustainable finance Debt capital markets Derivatives Regulation for derivatives lawyers Technology in banking & finance transactions Structured products and securitisation Regulation for banking lawyers Banking & Finance Highlights 2024/2025 Daily and weekly news alerts New and updated content Useful information Sustainable finance and ESG weekly round-up For this week’s coverage of Sustainable finance and ESG developments, please see: Sustainable finance and ESG weekly round–up—19 December 2024. Moveable Transactions (Scotland) Act 2023 Moveable Transactions (Scotland) Act 2023 (Commencement) Regulations 2024 SSI 2024/378: From 1 April 2025, the outstanding provisions of the Moveable Transactions (Scotland) Act 2023 (the Act) will come into effect. See: LNB News 17/12/2024 9. Moveable Transactions (Forms) (Scotland) Regulations 2024 SSI 2024/379: These prescribe the forms to be used for the purposes set out...

ARCHIVED : This Practice Note has been archived and is not maintained . This Practice Note serves as a launch point to help firms plan and carry out a London Interbank Offered Rate (LIBOR) transition project. It sets out the FCA’s part in the LIBOR switch and how it is supporting firms’ preparations, then examines in greater depth the principal issues raised by UK regulators. This is followed by a checklist highlighting key LIBOR impact areas that firms must review and address, together with points to weigh when doing so. It should be treated as a foundation and read in the context of each firm’s operations and LIBOR exposures, and tailored and adjusted accordingly. Practice Note: LIBOR transition [Archived] offers a broader outline of the matters around LIBOR transition, plus explanations of commonly used terms. The LIBOR developments tracker summarises developments linked to moving from LIBOR to risk-free rates. It covers each LIBOR currency: Sterling US dollars Swiss Francs Japanese Yen Euros...

Banking & Finance—key dates and future developments tracker: 2026 and beyond This Banking & Finance key dates and future developments tracker is designed to help banking and finance lawyers monitor forthcoming milestones, timelines and horizon scanning. It also captures developments in other Practice Areas where they are pertinent to banking and finance specialists, although some Practice Areas publish their own dedicated trackers. Note that it does not catalogue every consultation on financial services regulation (including derivatives and capital markets). Rather, it spotlights those matters the Banking & Finance team view as most pertinent to practitioners and to facility documentation. For wider coverage of UK and European Union (EU) financial services regulatory change, see Practice Note: Trackers and Timelines—financial services. For a focused summary of the latest on LIBOR, see Practice Note: LIBOR developments tracker. This tracker also excludes cases. For updates on the progress of cases that are relevant to, or may interest, banking and finance lawyers, refer to: Banking & Finance case tracker...

This concise guide explains which UK enactments and retained EU measures were altered and/or repealed by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019, SI 2019/657 (the Benchmarks Exit Regulations), together with other instruments at the close of the implementation period following the UK’s departure from the EU, and highlights matching updates to the Financial Conduct Authority’s (FCA) rules and guidance. Overview of onshored and preserved EU-derived law post-IP completion day The Benchmarks Exit Regulations were laid on 25 March 2019. They sat within HM Treasury’s series of statutory instruments made under the European Union (Withdrawal) Act 2018 (EU(W)A 2018) to provide contingency arrangements for a no-deal Brexit. As part of the wider effort to onshore EU law, they aimed to maintain legal continuity once the UK left the EU. The EU(W)A 2018 was later amended by the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020), which enables ratification and implementation in domestic law of the Withdrawal Agreement between the UK and the EU. The Withdrawal...