Foreign exchange is to be reviewed by the Fair and Effective Markets Review and become part of the report on Libor governance.
After the scandals of Libor fixing, and some of the largest fines on a bank recorded against Barclays and UBS, the UK is launching a consultation to bring in other benchmarks into line. When new laws are passed for governing Libor, the London Interbank Offered Rate, there will also be a possibility that many other reference rates will be included in the new governance; foreign exchange being just one.
Reuters reported that seven benchmarks would be on the list, “including the WM/Reuters 4pm London fix - the dominant global benchmark in the $5.3 trillion-a-day currency market.
London gold and silver fixings, the ICE Brent futures contract, and reference rates for the Sterling Overnight Index Average (SONIA) money market rates are among the other benchmarks included in the consultation.”
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