Financial benchmarks: MEPs determined to prevent new manipulation scandals
MLex correspondent John Rega is joined by Dutch MEP Cora van Nieuwenhuizen (ALDE), the European Parliament’s rapporteur on benchmarks in financial instruments and financial contracts, to talk about the draft law that seeks to tackle manipulation of key rates.
Following the LIBOR and EURIBOR manipulation scandals, new financial index regulations will seek to prevent future market abuse. Van Nieuwenhuizen’s report aims to temper an “exaggerated” Commission proposal that would cover all indices. The rapporteur proposes using quantitative and qualitative criteria to define systemically critical indices and benchmarks. Her approach is broadly supported by MEPs, leaving Van Nieuwenhuizen optimistic of reaching an agreement.