Global Watchdogs Seek End to Tainted Benchmark Guessing-Game
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Global regulators set out plans to overhaul the way key financial benchmarks are calculated as they try to re-establish confidence in key market rates tarnished by manipulation scandals.
The Financial Stability Board said rates, particularly those such as Libor used to calculate interest rates, should be “to the greatest extent possible” based on actual trade data rather than employees’ estimates, according to a statement published on its website today. The FSB, which consists of regulators and central bankers from around the world, also called for the development of alternative benchmarks.