UK regulator wants more banks to help set Libor
LONDON (Reuters) Britain financial watchdog wants more banks cheap Canada Goose to help canada goose factory sale set Libor, saying firms canada goose store that do not volunteer to join panels that calculate the interest rate daily could be compelled to. regulators for manipulating LIBOR. Peers such as RBS and UBS were expected to settle similar charges in coming weeks.
The fines imposed on Barclays led to banks pulling out of panels that set interest rates in places such as Hong Kong and Singapore as they grew reluctant uk canada goose outlet to expose themselves to possible allegations of manipulation of reference rates that are used relatively canada goose infrequently.
Probes by regulators in several countries prompted a review by FSA managing director Martin Wheatley, which Canada Goose sale made recommendations in September to reform how Libor was set, governed and supervised.
At present, 11 18 banks contribute to setting Libor in each of canada goose clearance the five main currencies Libor has 150 variants, depending on currency and maturity.
The FSA said on Canada Goose Coats On Sale Wednesday it wanted to have a minimum of 20 firms canada goose outlet taking part Canada Goose Online in each currency and it would get powers to force banks to participate.
It set out how canada goose uk outlet those recommendations would be implemented from March. The paper said the number of banks involved could be increased to discourage attempts to manipulate Libor.
some cheap canada goose uk cases, we think it would be beneficial to the rate if firms considered voluntarily applying to submit to the Libor benchmark, the FSA said.
submitters might also review whether to join additional panels for any of the five currencies that are to be retained. Canada Goose online in which they do not currently canadian goose jacket participate.
Putting forward criteria for deciding which banks Canada Goose Jackets would be eligible to take part, the FSA buy canada goose jacket cheap said the top 30 40 institutions should contribute to Libor.
would expect to consult the market again in the event that we wish to enact the compulsion powers. We many canada goose uk black friday not consult, however, if we felt canada goose clearance sale we had to use the power in an emergency to introduce rules requiring submissions to maintain the integrity of Libor, buy canada goose jacket the FSA said.
The number of canada goose uk shop variants will uk canada goose be cut canada-gooseoutlets drastically by early 2013 to focus on the more heavily Canada Goose Parka traded ones.
The FSA said the reforms will be finalized by March and will come into effect at short notice.
Libor will be the only regulated canada goose coats on sale benchmark in Britain at first, meaning submitters must comply with new rules to avoid abuses and conflicts of interest. Other benchmarks Canada Goose Outlet could be added later.
The British Bankers Association is being shorn of its role as Libor administrator.
The new administrator would then pay an annual fee of 385,000 pounds from the second year on. The FSA estimated it will cost the administrator 1.6 million pounds to get started with ongoing costs of up to 1 million pounds a year.
A bank taking part in submitting quotes to canada goose black friday sale Libor under the new regime faces one off costs of 1.6 2.5 million pounds, and on going costs of 163,000 545,000 pounds, the FSA said.
The watchdog said it was difficult to quantify the benefits of the new rules in monetary terms but the global importance of Libor we canada goose coats believe the benefits outweigh the costs.
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