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U.k. Seeks To Criminalize Manipulation Of 7 Benchmarks

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The U.K. government will seek to criminalize the manipulation of seven more benchmarks in markets from foreign exchange to gold as it tries to revive confidence in the integrity of London as a financial center.

The Treasury today started a review into whether it should extend new legislation regulating the London Interbank Offered Rate to cover other key rates including the WM/Reuters 4 p.m. London currency fix, the Sterling Overnight Index Average, the London Gold Fixing and the ISDAFix, according to a statement. The government aims to have the new rules in place by the end of the year-end -- five months before the next general election.

The U.K. is stiffening the penalties for manipulation after key benchmarks set in London were tainted by scandal. At least 10 firms have been fined almost $6.5 billion for rigging Libor, the key interest rate used in more than $300 trillion of contracts ranging from mortgages to student loans, and related benchmarks. Regulators are also probing whether traders rigged rates in the currency market too.

“The strong arm of the law is being applied to areas where previously self regulation and standard practice were the norm,” said Simon Maughan, head of research at financial-analysis firm OTAS Technologies in London. “This is the right thing to do to ensure trust in the markets from here on.”

I bet the City spivs aren't happy with this, not that anyone will be ever be jailed.

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Let's hope some civil protections from abroad come for these criminals.

But quite hard to prove legally - I believe that fraud law is a little unclear on this point. In some ways it is closer to insider trading. This has been the problem that the changes are addressing.

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Does it include the official inflation rate, GDP and others?

good point.

false weights and measures is just as much fraud as bernie madoff with grannies savings.

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But quite hard to prove legally - I believe that fraud law is a little unclear on this point.

Yes- and the more wealthy the people involved are the more unclear things become- funny how that works.

Yet that same legal system shows remarkable flexibility in it's dealings with the lower orders, as we saw in the case of the london riots where the courts ran through the night to ensure that the message of deterrence got through to the great unwashed as quickly as possible.

One law for the rich, another for the rest- same as it always was.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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