Since 2014, regulators, industry bodies and various working groups of private-market participants have engaged in the reform of benchmark interest rates known as Interest Bank Offered Rate (IBORs). Some benchmarks are being reformed to change the methodology of how the interest rate benchmarks are calculated (for example, reforms to Euro-specific benchmarks EONIA and EURIBOR begun in 2019). The London Interbank Offered Rate, known as LIBOR, are being phased out entirely. LIBOR, the most widely used benchmark for short and medium-term interest rates is published in GBP (British Pounds sterling), USD (US Dollar), EUR (Euro), JPY (Japanese Yen) and CHF (Swiss Franc). Other demising or subject to reform IBOR benchmark rates includes the Tokyo Interbank Offered Rate (TIBOR) for Japan Yen, the Canadian Dollar Offered Rate (CDOR) for Canadian Dollar, the Hong Kong Interbank Offered Rate (HIBOR) for Hong Kong Dollar and the Singapore Interbank Offered Rate (SIBOR) for Singapore Dollar.

LIBOR is currently published by the ICE Benchmark Administration (IBA) based on submissions from panel banks of rates charged for unsecured lending to other banks in specified tenors and currencies. The UK Financial Conduct Authority has announced that:

  • immediately after 31 December 2021 all current settings of Sterling, Euro, Swiss Franc and Japanese Yen LIBORs, and the 1-week and 2-month settings of US Dollar LIBOR will cease publication;
  • immediately after 30 June 2023 all other current settings of US dollar settings will cease publication.

Currency-specific working groups have identified preferred currency specific RFRs to replace LIBOR. RFRs are generally based on overnight deposit rates or, in the case of USD RFRs, repurchase agreements (repos). RFRs differ from LIBOR in a number of other important ways:

  • LIBOR is a term rate and so is set prior to the commencement of the interest period to which it relates. This allows a borrower future certainty as it will be able to calculate at the outset of the interest period the amount of interest which will be payable. Most RFRs are backwards looking and are published the day after the period to which they relate meaning the borrower may only know shortly before or on the interest payment date how much interest it owes.
  • The calculation of LIBOR includes a premium for bank credit risk for the relevant tenor. RFRs do not include the same premium, and therefore, the interest rate payable on an RFR benchmark rate may be different to LIBOR.
  • LIBOR is administered in London and published on or about 11:00 AM London time for a number of different currencies. Each currency-specific RFR is administered locally, and rates are published at different times.

For more information on CHF LIBOR, EONIA, EURIBOR, EUR LIBOR, HBOR, JPY LIBOR, TIBOR, SIBOR, SOR, CDOR and USD LIBOR please refer to our table.

Read our Frequently Asked Questions on Navigating the IBOR Transitions:

Navigating the GBP LIBOR Transition - Frequently Asked Questions

Navigating the US$ LIBOR Transition - Frequently Asked Questions

About the 2020 IBOR Fallbacks Protocol - Frequently Asked Questions

What is "fallback language" in the context of the benchmark reform?

In EMEA, following the implementation of the EU Benchmark Regulation (BMR), all new contracts referencing a benchmark should provide fallbacks which are contractual provisions that determine the reference rate or provide a means to determine a replacement rate if the relevant benchmark becomes unavailable or is deemed unrepresentative. Legacy contracts, to the extent possible, should also be amended to incorporate adequate and robust fallback language.

ISDA 2020 IBOR Fallbacks Protocol

The International Swaps and Derivatives Association (ISDA) has published the ISDA 2020 IBOR Fallbacks Protocol as a method for parties to efficiently and electronically amend, with their adhering counterparties, specific master agreements and transaction confirmations by incorporating the new fallbacks (replacement benchmarks). In addition, Supplement 70 to the 2006 ISDA Definitions incorporates the same fallbacks into new master agreements and transaction confirmations. Both the ISDA IBOR Fallbacks Protocol and Supplement 70 to the 2006 ISDA Definitions took effect on 25 January 2021. As of the 25 January 2021, all new derivatives contracts that incorporate the 2006 ISDA Definitions and reference one of the covered IBORs will contain the new fallbacks. Derivatives contracts already existing as of this date will incorporate the new fallbacks if both counterparties have adhered to the ISDA IBOR Fallbacks Protocol or otherwise bilaterally agreed to include the new fallbacks in their contracts. The ISDA IBOR Fallbacks Protocol remains open for adherence after 25 January 2021.

ISDA has also published a statement in response to the FCA announcing that this constitutes as an 'Index Cessation Event' representing a 'Spread Adjustment Fixing Date'. This means that the published ISDA Spread, to be used as the spread adjustment value for IBOR fallbacks under the ISDA Protocol, has now been fixed. Please see here for the final values.

In support of MUFG's comprehensive LIBOR Transition Strategy, MUFG Securities EMEA plc; MUFG Securities (Europe) N.V.; and MUFG Bank, ltd, have adhered to the ISDA IBOR Fallbacks Protocol, and we encourage you to consider whether the ISDA IBOR Fallbacks Protocol may be part of an appropriate solution for your organisation.

For further information, please read our Frequently Asked Questions on the ISDA IBOR Fallbacks Protocol.

What are our plans?

MUFG has implemented an IBOR Transition programme, working with various regulators, the industry and our clients to manage the successful transition of this market change. We are committed to working in partnership with our clients to support them through this transition and we encourage you to keep up to date with the latest industry developments in relation to IBOR reform and to consider its impact on your own business.

Contact Us

If you would like any further information or have any questions, please do not hesitate to email us at


MUFG Securities

MUFG Bank (Europe) N.V.

Useful Links

For further background information, the following websites contain useful information:

This page and its related content are not intended to be, and should not be relied upon as, legal, financial, tax, accounting or other advice. We are not providing you with any such advice and you should consult your own advisors for advice on the reform of interest rate benchmarks and the related risks. We make no representation and provide no warranty as to the information set out in herein, which is based on information from third parties, and you should not rely on any such information as constituting a representation or warranty. The content herein is not intended to be comprehensive and was last updated on 22 April 2020. Material developments may have occurred since this last update. This page and its related content do not consider risks to you from interest rate reform and there may be other issues that are not highlighted below. Without limiting the foregoing, this page and its related content do not address issues specific to any particular sector or business. We are not acting as your fiduciary or adviser and the provision of this information to you will not give rise to any duty of care. We assume no responsibility for any use to which these this information may be put. The areas covered herein are continually evolving and you should consult the relevant sources. Links to some of the relevant working and industry groups are at the end of this document.