A BMR-shaped hole in the US Libor transition

US could benefit from copying EU Benchmarks Regulation as market moves to shaky Libor successors

When a string of US regulators attacked credit-sensitive Libor replacement rates in June, some were startled by the vitriol. Speaking of one of the benchmarks, known as BSBY, Gary Gensler at the Securities and Exchange Commission said it had “many of the same flaws as Libor” and that “there’s a heck of an economic incentive to manipulate it”.

The truth is, when it comes to reining in alternatives that closely resemble the discredited Libor benchmark, the SEC and the Federal Reserve have little

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