In the wake of the Libor scandal, MEPs back measures to ensure the reliability of benchmarks used to price loans, mortgages and financial transactions.

Learning the lessons from the Libor scandal

https://api.multimedia.europarl.europa.eu/documents/20125/12154529/n005-150331-001-en.srt

When banks were caught rigging the  London interbank lending rate, or Libor,

came the realisation  more transparency was needed

over how the rate of loans, mortgages and  financial transactions are fixed by banks.

After billions in fines  being slapped on the big culprits,

over to the Parliament where MEPs  put new EU-wide rules to a vote.

between critical  and non-critical benchmarks.

We don’t want to cause  unnecessary administrative burdens.

So for ones that are not critical,  we don’t have the same requirements.

Something will fall within  the 'critical' benchmark ambit

if the rate at which it is valued  is over 500 billion euros,

which then has the ability  to impact market stability.

For some, that distinction  has weakened regulation.

Now all benchmarks  which are based on regulated data

which applies to most financial benchmarks

cannot be critical, and therefore  are falling out of strong EU supervision.

And this basically means that on Libor  and other important benchmarks,

Whether the definition of ‘critical  benchmarks’ will undergo transformation

all depends on when the draft law  goes to a vote at the plenary.