Tag: LIBOR
A way for non-EU benchmarks to keep a toehold in the EU?
The Presidency of the Council of the EU published the last compromise proposal for regulation of benchmarks, dated 21 November 2014. On that same day, the chairman of the CFTC criticised the EU benchmark initiative as it left no viable space to foreign benchmarks within the EU. Yet, from a version to another, the series […]
EU on benchmarks – L’Enfer, c’est les autres
On 27 October 2014, the Fair and Effective Markets Review (FEMR) in the UK published a consultation paper on fixed income, currency and commodities (FICC) markets, with a section dedicated to benchmarks. The Review is led by staff from the HM Treasury, the Bank of England and the FCA. On the same day, the Council […]
The WM/Reuters 4 pm London fix caught pants down
On 30 September 2014, the FSB published the Final Report on Foreign Exchange Benchmarks, along with the Review of the implementation of IOSCO principles on financial benchmarks in connection with the WM/Reuters 4 pm Closing Spot Rate. Final Report on FX Benchmarks The Final Report contains 15 broad recommendations, covering: WM/Reuters 4pm London fix Central […]
Seven benchmarks to join LIBOR on the hot seat
On 25 September 2014, the “Fair and effective markets review” in the UK published its “Recommendations on additional financial benchmarks to be brought into UK regulatory scope” (dated August 2014), along with the consultation document. This interim deliverable focuses on fixed-income, currency and commodity (FICC), UK-based benchmarks i.e. where administrators and contributors are physically located […]
Is Brussels setting the table for a move away from LIBOR?
On 10 September 2014, the Presidency of the Council of the EU published its first compromise proposal for regulation on benchmarks. This last version reveals a variety of adjustments since the original proposal published in September a year ago. Although some changes result in a lighter bite for certain benchmark administrators, Brussels is sharpening the knives […]
Top Cop Tim talks at last
CFTC Chairman Timothy Massad broke his self-imposed silence last week, granting his first interview to Bloomberg TV. While he has been busy making high-profile hires, and the Agency has kept its no-action letter production line up to speed, the market has had little sign of any change in direction under the new helmsman. This rather […]
ISDAfix lines up to get its IOSCO fix
On 1 August 2014, ICE Benchmark Administration Limited (IBA) formally assumed the role of ISDAFIX administrator. IBA confirmed that ISDAFIX will undergo major changes by moving from a polled submission model to a methodology based on actual transactions and/or executable quotes. This reflects one of the key orientations outlined in the IOSCO principles on financial […]
Flagship benchmarks benchmarked
On 22 July, IOSCO published a Review of the implementation of the principles on financial benchmarks by the administrators of Euribor, Libor and Tibor. The 150 page review covers the degree of implementation of the principles as of 11 April 2014, only seven months after the final principles were released. The significance of these three […]
Lie-bor: an expensive “fix”
The FDIC filed a lawsuit in the federal district of New York, on Friday 14th March, accusing 16 of the world’s largest banks[1] of manipulation of the discredited benchmark rate-series, committing fraud and violating U.S. antitrust laws. The suit is made on behalf of a group of 38 U.S. banks, all casualties of the 2008 […]
Evidence Presented in Landmark UK Libor Cases
On 15 October 2013, the Court of Appeal began a 3-day hearing to examine two separate cases brought against Barclays and Deutsche Bank linked to Libor-rigging. The UK court will consider whether the banks mis-sold products that were based upon the rate and whether attempted manipulation of Libor can invalidate a loan or other deals. […]