Former LSE exec questions Libor replacement option

04/23/2013 | Trade News (U.K.), The

Kevin Milne, former head of post-trade services at the London Stock Exchange, says tying the London Interbank Offered Rate's replacement to proxy data would fail to be reliable when markets are stressed. Specifically, Milne, who leads benchmark provider RVS QED, is concerned about anchoring the benchmark to repo rates, a market for which he says could vanish in light of a European financial-transaction tax. "If there's no repo market, a repo-based imputed rate won't be representative," he said.

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Trade News (U.K.), The

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