Barclays Backs Libor Based on Transactions

BlackRock and CME argue against limiting input to transaction data in comment letters.

Barclays Plc, which paid about $450 million as the first bank to settle in a worldwide probe of interest-rate rigging, said benchmarks should be tied to actual market transactions and not estimates.

Overseers of financial benchmarks should have limited or no discretion to set levels, Barclays said in a letter released yesterday by the International Organization of Securities Commissions. The letter, dated Feb. 11, was a response to IOSCO’s January request for comments on possible measures to overhaul the setting and governance of such benchmarks.

‘Not Anchored’

“If it’s not anchored, I don’t know what it means, truly,” Gensler said Feb. 27 at a roundtable meeting in Washington.

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