Benchmarks underpinning markets from oil to currencies face tougher oversight under plans by global regulators to prevent any repeat of Libor-style fraud.
Bloomberg News reports that rates should be based as much as possible on real transaction data, rather than estimates, and banks should tackle conflicts of interest, the International Organization of Securities Commissions, a Madrid-based group that harmonizes global market rules, said in guidelines published Wednesday.
Authorities are grappling with a growing number of rate-setting scandals. Global regulators have fined UBS, Barclays and Royal Bank of Scotland about $2.5bn for distorting the London interbank offered rate, known as Libor, and similar benchmarks.
The measures are 'an important step' in restoring the credibility of tarnished benchmarks, Martin Wheatley, chief executive officer of the U.K. Financial Conduct Authority and a co-head of the Iosco benchmark task force, said in a statement. 'These principles set out clear and robust standards'.
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