Changes to the LIBOR reference rates

The upcoming phase-out of the Interbank Offered Rates (IBORs) in favour of alternative reference rates means notable changes in the global financial system. Alternative reference rates may include Risk Free Reference Rates (RFRs), also known as ‘Near’ Risk Free Reference Rates. The aim of the transition away from IBORs is to make sure that, in the future, reference rates will be transaction based and more transparent in order to create a fairer, robust and reliable market. The London Inter Bank Offered Rate (LIBOR) is one of a number of IBORs that are used widely across the global financial markets and is the most commonly used IBOR in the UK.