One Year Ago

Financial market benchmarks such as LIBOR and EURIBOR were being closely investigated following the benchmark scandal, with Commodity Futures Trading Commission Chairman Gary Gensler saying they should be more closely aligned to real observable transactions. Gensler told a European Parliament public hearing that collusion and manipulation would be less likely if index benchmarks more closely tracked real transactions. [The International Swaps and Derivatives Association recently outlined plans to rival EURIBOR and LIBOR with a renovated ISDAfix, aiming to roll out new methodology for the way it calculates the benchmark for interest rate swaps in Q1 2014. ISDA is working on a process where rates are sourced directly from regulated electronic trading venues known as multi-lateral trading facilities, where market-makers stream actionable prices for cleared swaps].