EU to criminalize Libor-style rate-rigging

EU to criminalize Libor-style rate-rigging
# 25 July 2012 18:38 (UTC +04:00)
Baku-APA. The European Commission on Wednesday proposed to make rigging key global benchmarks including London Interbank Offered Rate (Libor) a criminal defense, APA reports quoting Xinhua.

The Commission said in a statement on its website that it had "acted to address this kind of market manipulation, by adopting amendments to the proposals for a Regulation and a Directive on insider dealing and market manipulation, including criminal sanctions."

"Today’s amendments will clearly prohibit the manipulation of benchmarks, including Libor and Euribor, and make such manipulation a criminal offence," said the statement.

The action came nearly a month after British bank Barclays was fined a combination of 452 million U.S. dollars by the U.S. and British regulators for some of its traders and senior managers attempting to manipulate Libor.

The London rate and the related European interbank offered rate (Euribor) are benchmarks for over 500 trillion dollars in global contracts, including loans and mortgages. Benchmarks also serve as the basis for many commodity contracts.
#
#

THE OPERATION IS BEING PERFORMED