Is STIBOR Tom/Next in a planned cessation stage?

    Should such a transition occur there may develop the case where Tom/Next STIBOR is no longer broadly referenced. At such a time a planned cessation of Tom/Next STIBOR could be proposed by the SFBF in accordance with its policies aligned to the requirements of BMR. In the meantime, the SFBF recognises the importance of Tom/Next STIBOR in the settlement of local currency derivative products and the requirement therefore, for it to be maintained to avoid any unnecessary market uncertainty and disruption.

    The development of the SWESTR rate by the Riksbank provides a required fallback to STIBOR and further may provide market participants and other users of STIBOR with an alternative short term reference rate that users may wish to transition towards. A transition away from Tom/Next STIBOR to the overnight SWESTR rate will be market-led, decided by market participants and users of STIBOR rather than it being a decision for the SFBF.


    Has the use of STIBOR by UK supervised users been affected by BREXIT?

    Following the withdrawal of the UK from the EU on 31 January 2020 and the end of the accompanying transitional period on 31 December 2020 the UK has enacted Benchmark Regulation framework which will have an impact on the use of STIBOR by UK supervised users.

    The UK has implemented further transitional arrangements such that UK supervised users can continue to use 3rd country benchmarks (such as STIBOR) until at least the end of 2022 without either the benchmark or its administrator being registered with the UK Financial Conduct Authority (FCA).

    Once SFBF receives authorisation under the EU Benchmark Regulation as the administrator of STIBOR, it intends to apply to the UK FCA for the inclusion of the SFBF on the UK register of approved benchmark administrators to allow UK supervised users to continue to use STIBOR post the 2022 year end deadline.