European proposals Jurisvo
London could lose control to Paris of the scandal hit interbank lending rate Libor if European authorities get their way.
A draft regulation would move oversight of the benchmark from London to the Paris based financial markets regulator, the European Securities and Markets Authority (ESMA), reports Portfolio Advisor.
The wide-ranging European Commission proposal would allow ESMA to oversee and authorise a range of key financial benchmarks at a European level, including Libor. According to a EC spokesperson: ‘As Libor is a global benchmark, and it’s used throughout the EU in contracts, it makes sense for the supervision to reflect that reality and thus have a European dimension, and responsibility for the relevant European supervisory body.’