Regulators make clear Libor inquiry is just the beginning

Regulators around the world are making it clear they are moving beyond inquiries into the London Interbank Offered Rate, questioning the integrity of many benchmark rates. The Monetary Authority of Singapore recently sanctioned a number of banks in relation to interest rate and foreign exchange benchmarks, and Hong Kong authorities have expanded their investigation into possible manipulation of local benchmark interest rates. However, experts warn that a one-size-fits-all approach to benchmarks may be detrimental to markets. "We believe that it will still be necessary to deploy algorithms or expert judgment to fill the gaps where no trade data exist," said George Handjinicolaou, ISDA's deputy chief executive.

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