Jurisdiction(s):
United Kingdom

Related legal acts

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”...

LIBOR cessation: legislative solutions for tough legacy contracts—UK synthetic LIBOR and continuity safe harbour, US LIBOR Act, and EU statutory replacements (Archived)

Published by a LexisNexis Banking & Finance expert

Practice notes

Stop press: LIBOR, including synthetic LIBOR, stopped being published after 30 September 2024. Please be aware that this Practice Note is no longer maintained. ARCHIVED: This Practice Note has been archived and is not updated.

This Practice Note sets out targeted information on legislative measures proposed in the US, UK and EU to deal with tough Legacy contracts arising from the discontinuation of the London Interbank Offered Rate (LIBOR). It:

clarifies the meaning of ‘tough legacy contracts’ and why they pose difficulties
outlines the legislative measures proposed in the UK, US and EU and the present state of that legislation
assesses the extent to which those measures could resolve the tough legacy problem, with a specific emphasis on the UK, and
contains a table contrasting principal features of the legislative measures

Additional guidance on the LIBOR transition is available in:

LIBOR transition toolkit
Introductory guide to LIBOR transition
Practice Note: Interest provisions in risk-free rate based loan agreements

What are tough legacy contracts?...

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Web page updated on 21/05/2026

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