eu to regulate libor other financial benchmarks
Last Updated : GMT 05:36:23
Arab Today, arab today
Arab Today, arab today

EU to regulate Libor, other financial benchmarks

Arab Today, arab today

Arab Today, arab today EU to regulate Libor, other financial benchmarks

Brussels - AFP

The European Commission unveiled plans Wednesday to closely regulate key financial benchmarks used globally to price loans after a rate-rigging scandal blew the lid off the clubby world of banking. \"Today\'s proposals will ensure for the first time that all benchmark providers have to be authorised and supervised; they will enhance transparency and tackle conflicts of interest,\" EU Financial Markets Commissioner Michel Barnier said in a statement. The measures cover not only the scandal-hit Libor, the flagship London reference rate used all over the world to set the rate banks, businesses and individuals pay to borrow money, but also \"a broad variety\" of benchmarks used in commodity, energy and derivatives markets. Crucially, the plans brings some measure of central supervision to a system that until now was largely run and supervised by the banks themselves. The most used benchmarks, Libor and its eurozone equivalent Euribor, will be overseen by national administrators working in tandem with the Paris-based European Securities and Markets Authority. \"Benchmarks are at the heart of the financial system: they are critical for our markets as well as the mortgages and savings of millions of our citizens, yet until now they have been largely unregulated and unsupervised,\" Barnier said. Libor is calculated daily, using trade quotes and estimates from banks of their own cost of borrowing on the interbank market. The rate affects the pricing of more than $300-trillion of contracts across th world, according to regulators. But the insular world of Libor imploded in 2012, undermined by revelations that major banks, among them Barclays, Royal Bank of Scotland and UBS, had manipulated Libor to their advantage, especially during the turmoil and aftermath of the 2008 global financial crisis. Certain banks lied on their rates and that is why you have heard me for the past three and a half years evoke the need to bring morals and ethics back into banking,\" Barnier said at a news conference. Some of these manipulations were made before the financial crisis, he added, \"so that bankers could make more money.\" Under Barnier\'s plans, which have to be approved by the 28 EU member states and the European Parliament, benchmark rates \"will be subject to prior authorisation and on-going supervision at national and European level.\" They would also require that the information used to calculate a benchmark was indeed accurate, reflecting the true cost of money in the market. Missing from the proposals was an idea floated earlier this year that the fixing of Libor would be moved to Paris for oversight by ESMA. But Britain balked at this plan and in July announced that NYSE Euronext, the owner of the New York Stock Exchange, would take over management of Libor out of London early next year. And jealous to preserve its standing in the global financial markets, Britain will also be relieved that national oversight is spared. London believes its own reforms of the LIBOR have cleaned up the system.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu to regulate libor other financial benchmarks eu to regulate libor other financial benchmarks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu to regulate libor other financial benchmarks eu to regulate libor other financial benchmarks

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday