Article 8.3 Intercontinental Exchange unveils plans for Libor reform

Philip Stafford

Financial Times October 20, 2014

Intercontinental Exchange wants to rehabilitate Libor by proposing that submitting banks include transactions they conduct with central banks as part of their daily calculations.

To toughen the new rate-setting process, ICE proposes establishing a system in which a wide range of data from around the world is used as a basis for submissions. It also wants to force banks to flag up more clearly those submissions which have been supplemented with human judgments.

It added that it wanted banks to anchor rates based on their unsecured wholesale funding deposits, commercial paper and primary issuance certificates of deposit. The approach follows guidelines recommended by the UK-backed Wheatley report in 2012.

FT

Source: Stafford, P. (2014) Intercontinental Exchange unveils plans for Libor reform, Financial Times, 20 October.