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EU sees progress on reforming Euribor

February 21, 2014


A EUROPEAN bank industry body has made substantial progress in shielding the Euribor interest rate benchmark from rigging by traders, two EU regulators said yesterday.

The European Securities and Markets Authority (Esma) and the European Banking Authority (EBA) published guidelines a year ago as they sought to restore public confidence in Euribor, the Euro Interbank Offered Rate.

Esma and EBA said that Brusselsbased Euribor-EBF, the body that compiles the benchmark, had applied four of their recommendations in full and a further six in part.

"Euribor-EBF is on the right path," EBA chairman Andrea Enria said in a statement.

"Its progress in terms of governance and conduct reflects a strong commitment to ensuring the quality of its benchmarks. I remain confident that the Euribor-EBF will soon complete its work, building on the continued support and commitment of panel banks," Enria added.

The guidelines from the watchdogs are an interim fix until the EU passes a new law to regulate major financial benchmarks, although a significant vote on the law was delayed this week.

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Source: City A.M. (UK)

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