Proposed reforms in the way Libor is compiled could lead to morevolatility in short-term bank funding, Reuters reports.

On Friday, British regulators unveiled a proposed overhaul thatincludes increasing the number of banks that submit data andrequiring banks to back up estimates with information about othermarket rates.

JPMorgan money market Alex Roever notes that after Barclaysreached a settlement with the U.S. Commodity Futures TradingCommission, a settlement that required it to substantiate itssubmissions by citing other rates, the volatility in its Liborsubmissions increased.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.