Commodity benchmarks could be subject to tighter FCA rules

Commodity benchmarks, such as those used for gold and oil, could be subject to tougher regulation in the wake of the Libor scandal.

According to a report in the Financial Times key resource barometers could fall under the eye of the regulator.

At a conference in Rome FCA technical specialist Don Groves admitted he would not be surprised if the UK Government did take some form of action.

Speaking at the event, he said: “I don’t want to give the impression that the UK is picking on the bullion market or anything else but a consumer focus is what politicians are looking at…so there’s going to be more focus from us, as regulators, on consumer issues.”

“And if you think about things like natural gas, oil, electricity… you will probably see something named as a benchmark for those particular commodities”

Last year Barclays was fined £290m last year after it was discovered that a number of its derivative traders had attempted to the Libor of London inter-bank lending rate, which is widely seen as one of the most significant measures in finance.