British Bankers Association consults on Libor reform

The British Bankers’ Association is to consult on the Wheatley Libor reforms, with proposals to discontinue certain Libor currencies and maturities.

The move in is line with the sixth recommendation by Financial Conduct Authority chief executive-designate Martin Wheatley, who undertook the Libor review.

BBA chief executive Anthony Browne says: “The BBA is working closely with Martin Wheatley and his team to ensure the continued provision of a reliable benchmark which has the confidence and support of all users, contributors and global regulators.

“We have today published a short consultation paper, proposing a phased approach to the streamlining of Libor tenors and currencies during the early months of 2013.”

Martin Wheatley adds: “I welcome the BBA’s first steps towards implementing a key recommendation of the Wheatley review of Libor through its consultation on the gradual phasing out of currencies and maturities which needs to be subject to an open process and market feedback to ensure that enough time is given to allow market users to adapt.”

Last month, the Treasury announced it would implement all 10 recommendations set out by Wheatley in his review of the benchmark index that came under scrutiny after it was revealed to have been manipulated by a number of banks.