Jurisdiction(s):
United Kingdom

Key definition

LIBOR definition

What does LIBOR mean? In legal practice, LIBOR (the London Interbank Offered Rate) is the benchmark interest rate historically used in loans, bonds and derivatives to set floating interest. It was produced daily from panel-bank submissions of estimated unsecured wholesale funding costs in the London interbank market. LIBOR is not a statutory definition; it is a descriptive benchmark term used across finance documents and regulated as a “benchmark” under the UK and EU Benchmarks Regulation. For sterling and most other currencies, panel-bank LIBOR ceased on 31 December 2021; US dollar LIBOR ceased on 30 June 2023. In the UK, the FCA temporarily required “synthetic”...

Legacy LIBOR transition: comparison table of loan and swap RFR conventions and ISDA fallbacks for GBP, USD, EUR and CHF, highlighting basis risk (Archived)

Published by a LexisNexis Banking & Finance expert

Practice notes

ARCHIVED: This Practice Note is archived and not maintained

This note contrasts the conventions applied in the loan and swap markets for sterling, US dollar, euro and Swiss franc interest rate benchmarks that reference Risk-free rates (RFRs), and is designed to help Hedging lawyers pinpoint potential mismatches and sources of basis risk.

Loan and swap RFR conventions for Legacy transactions—comparison table

Pounds sterling (GBP): SONIA

Sources and guidance from the Working Group on Sterling Risk-Free Rates (RFRWG):

Working Group on Sterling Risk-Free Rates Detailed Loans Conventions (updated March 2021)
Best Practice Guide for GBP Loans (updated March 2021)
Fallback Rate (SONIA) Fact Sheet
IBOR Fallbacks
IBOR Fallback Rate Adjustments Rule Book
RFR Conventions and IBOR Fallbacks—Product Table

Interest methodology

Compound in arrears. The market generally favours compounding the rate rather than the balance; however, multiple approaches exist for calculating SONIA on a compounded in arrears basis, and implementation is left to the discretion of individual market participants...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...