CFTC's Enforcement Actions: Haunted Past or a Hopeful Future?
The aftershocks of financial benchmark crisis that shook the financial world not-so-long-ago are felt even today with the regulators around the world still picking up the remnants of investor confidence and nursing it back to vitality. The recent (May-2016) wave of Commodity Future Trading Commission’s (CFTC) regulatory orders surrounding alleged benchmark manipulation by Citibank and the consequent settlement penalties to the tune of $425 million (LIBOR - $175mn, and ISDAFix
US Fed's Alternative Reference Rates - Unearthing the LIBOR Replacement
Lately, If you are anyway related to the financial industry, chances are you would have heard about the buzz word of Financial Regulatory Reforms. A clear consequence of scandalous activity that dominated headlines for the better part of this decade - with the hashtag of #LIBOR. A lot has been done and a lot more has been put in motion by regulatory authorities around the world to prevent the repeat of such a crisis and to restore the faith of investors in these benchmarks. F
European Benchmark Regulation - Sufficient to Prevent a LIBOR Like Crisis Repeat?
The ink has not yet dried on the drafts of European Benchmark Regulation (Regulation) and while the markets and the industry are trying to gauge the effect of this all encompassing regulation, one thing seems increasingly evident - the benchmark regulatory practices across the globe converging towards the same destination - of Restoring Investor Confidence. However, it may be noted that the objective of restoring investor confidence is only the first step - which in turn lead
Bank of England’s Risk-Free Reference Rates - In the Quest of LIBOR Replacement
Recap For the better half of this decade, one could not help but hear and acknowledge the growing phenomenon of Financial Benchmark Reforms - an aftermath of manipulation and false reporting of global interest rate benchmarks. From the Wheatley Review in 2008 to the latest European Benchmark Regulation, regulators, administrators and market participants are engaging actively to restore investor confidence into the tainted benchmarks. Much of this work is in line with the Fina
ICE LIBOR ROADMAP – Building Market Credibility!
ICE Benchmark Administration (IBA) published LIBOR Roadmap following extensive consultation with various key stakeholders for the $350 trillion benchmark. Keeping up with the strategic direction set by Financial Stability Board (FSB), the focus of the administrator has been to base LIBOR in transactions to the greatest extent possible. In line with this, the IBA aims to overhaul the submission rate determination framework using a “Waterfall Methodology” where the rate will b
LIBOR, EURIBOR & TIBOR: Taking Stock Half-A-Decade Later
It is not surprising that the ripples created by financial benchmark manipulations from a half-decade ago are felt even today in the form of convictions, appeals, fines and more importantly tighter regulations and oversight. The steps taken by regulatory bodies across geographies to restore the investor confidence is palpable with the emergence of distinct determination methodologies for major benchmark rates such as LIBOR, EURIBOR and TIBOR for instance. The impetus being, a
