Home > Uncategorized > Libor-Like Manipulation Possible in Benchmarks Around the World – Businessweek

Libor-Like Manipulation Possible in Benchmarks Around the World – Businessweek

September 21, 2012 Leave a comment Go to comments

The same lack of oversight that enabled traders to manipulate the London interbank offered rate plagues other benchmarks around the globe, according to a group of international securities regulators.

Fewer than half of the benchmark interest rates surveyed in the U.S., Europe and Asia were based on actual transactions, according to a confidential International Organization of Securities Commissions discussion paper obtained by Bloomberg News. Instead, the rates were calculated by methodologies that were unclear, not transparent and only rarely subject to specific regulatory standards or obligations, the group said.

“Iosco, as the international organization of financial market regulators, is firmly committed to restoring confidence in benchmarking activities globally,” Masamichi Kono, chairman of the Iosco board, said in a Sept. 14 statement.

Iosco spokeswoman Carlta Vitzthum declined to comment on the discussion paper.

via Libor-Like Manipulation Possible in Benchmarks Around the World – Businessweek.

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