As of January 2022, the global financial sector will experience one of the most historic changes of the last decades, namely the IBOR reform. This reform will lead to the gradual disappearance of these interest reference rates and their replacement by other benchmark indices. The transition is all the more important, as IBORs are the interest reference rates for the listing and valuation of a wide range of financial instruments from bank loans to the most complex derivatives.
In recent years, the relevance of these benchmark rates has been questioned. In 2017, the Financial Conduct Authority (FCA) recommended the abandonment of indexation to IBORs and it is in this sense that the ICE Benchmark Administration Limited (IBA), LIBOR administrator, announced the gradual cessation of publication of these rates.