The International Organization of Securities Commissions (IOSCO), considering that the termination of LIBOR has been defined, reiterates the importance of ensuring a smooth and timely transition away from LIBOR in order to mitigate the risks to financial stability, market integrity and investor protection (https://www.fsb.org/2021/06/fsb-issues-statements-to-support-a-smooth-transition-away-from-libor-by-end-2021/).

This transition will require market participants to stop issuing new products that use LIBOR as a reference rate and efforts to transition away from LIBOR in legacy contracts.

In particular, in light of the significant use of US dollar (USD) LIBOR globally, IOSCO encourages all market participants to discontinue use of USD LIBOR as soon as possible and no later than the end of 2021, supporting the guidelines issued by the US Banking Supervisors in November 2020 and March 2021.

In line with its communication and outreach program launched in 2019, IOSCO also recalls the importance of transition from LIBOR to alternative rates that comply with the IOSCO Principles on Financial Benchmarks.