3 Questions to Christophe Binet on LIBOR Transition - EFAMA

Q #1  When will LIBOR phase out and which rates will be replacing it?

The London Interbank Offered Rate, also known as LIBOR®, is a widely-used index for short-term interest rates that is commonly found in loans, derivatives and bond documentation. It is administrated by the ICE Benchmark Administration (IBA). Currently, LIBOR is calculated for five currencies (USD, GBP, EUR, CHF and JPY) and several tenors in respect to each currency.

During the 2008 financial crisis, several LIBOR panel banks were accused of manipulating the rate, which led the UK Financial Conduct Authority (FCA) to decide that panel banks will seize to submit the rates required to calculate LIBOR as of the first of January 2022. 

More specifically, the FCA has recently confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative:

immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the 1-week and 2-month US dollar settings; and
immediately after 30 June 2023, in the case of the remaining US dollar settings.
The announced cessation of LIBOR leaves market participants wondering which are the most appropriate replacement rates.