New EU rules to stop banks rigging benchmarks

The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published their final report setting out their Principles for Benchmark-Setting Processes in the EU on the 6 June 2013.

In its report of this development EUObserver also reported that the European Securities and Markets Authority (ESMA) could be in line for sweeping new powers in the control of one of the key benchmarks, Libor.

European Commissioner for the Internal Market Michel Barnier was expected to table legislation in the summer of 2013 that would shift decision-making on Libor from banks in London to ESMA in Paris, a move regarded with suspicion by the City of London.

• Primary Source

ESMA: Press Release, ESMA/2013/684: ESMA and the EBA publish final principles on benchmarks http://www.esma.europa.eu/system/files/2013-684_press_release--esma_and_the_eba_publish_final_principles_on_benchmarks.pdf

ESO: Background information: Statement by Commissioner Michel Barnier on interbank interest rate benchmarks http://www.europeansources.info/record/memo-statement-by-commissioner-michel-barnier-on-interbank-interest-rate-benchmarks/

ESO: Background information: Consultation on benchmarks and market indices launched following LIBOR manipulation http://www.europeansources.info/record/press-release-consultation-on-benchmarks-and-market-indices-launched-following-libor-manipulation/

ESO: Background Information: Brussels to act over Libor scandal http://www.europeansources.info/record/brussels-to-act-over-libor-scandal/

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