Benchmarks and indices are vital tools for assessing the underlying price of financial instruments and contracts as well as for measuring the performance of investment funds. Despite this, recent LIBOR and EURIBOR scandals have exposed how vulnerable to manipulation these instruments are. In the light of these events, the European Commission produced a benchmark regulation, which Read More
On 11 April this year, the BIS’ Committee on Payment and Settlement Systems (CPSS) in collaboration with IOSCO published a ‘consultative report’ titled ‘Authorities’ access to trade repository data’. This report recognises the problems regulators face in trying to administer a global market without a source of globally aggregated, publicly available data and makes recommendations to regulators Read More
Hot on the heels of the first implementation date for the European Market Infrastructure Regulation (EMIR), the Bank of England has released its approach to the supervision of Financial Market Infrastructures. It is the systemic risk of clearing houses, securities settlement systems and payment systems that the bank will seek to monitor. To do that, Read More
Benchmark manipulation and fallout from it is not new news, but the global drive to regulate benchmarks is. The political sensitivity surrounding regulation in this space means that national regulators are racing at different speeds and approaches to implement reforms to ensure benchmarks are transparently regulated and set. The connection of benchmarks to multiple levels Read More
Libor, Euribor, Tibor, Noribor… Fines of $1.5 billion, £390 million and more expected across the globe …Fallout from benchmark manipulation is not new news, but the way in which we are driving towards new benchmarking regimes is. Why? Benchmarks are at the very core of the financial markets and even slight regulatory variances can result Read More
