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Western EuropeJanuary 25 2016

Benchmark rules stumble at last hurdle

A technical flaw in the EU’s rules to prevent financial benchmark manipulation could impose a disproportionate burden on commodity price reporting agencies.
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What is it?

A trialogue between the European Council, European Parliament and European Commission agreed a compromise text of the proposed regulation of financial benchmarks in December 2015. These measures follow a series of fines handed out to global banks for the manipulation of benchmarks used in financial contracts, for instance the London Interbank Offered Rate (Libor). However, the scope of the regulation goes well beyond interest rate benchmarks.

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