Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of progress on the ICE Benchmark Association project to reform the LIBOR Benchmark Methodology; whether the new system will be implemented across all panel banks; and what the communication strategy for that project is.

Since the Financial Conduct Authority (FCA) began regulating LIBOR in 2013, significant improvements have been made to the benchmark by its administrator, ICE Benchmark Administration, and the panel banks which submit contributions.

However, given the low levels of activity in the underlying markets which LIBOR seeks to measure, it has been difficult to ensure that submissions to the benchmark are rooted in transaction data, which was a key reform highlighted in the 2014 Financial Stability Board report on Reforming Major Interest Rate Benchmarks.

This is why the government is supporting a market led transition away from LIBOR towards near risk-free rates. Regulator convened working groups led by a cross section of market participants are making good progress towards achieving this aim.