News Column

Libor replacement lined up

July 23, 2014

? Tarnished interest rate benchmark Libor could be replaced with a new indicator of lending costs based on derivatives, global watchdog the Financial Stability Board said yesterday. Libor was vulnerable to fiddling by traders. The committee, headed by UK regulator Martin Wheatley, wants Libor to be based on real transactions in future, not banks' estimates. And it wants a new index based on derivatives to be created, potentially to replace Libor completely.

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Source: City A.M. (UK)

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