No changes to Libor, says BBA

The BBA outlined a number of possible changes to Libor last month, but now says the banks and dealers it consulted have been generally happy with the status quo. A suggested second daily Libor fixing, to take place after the US markets open (at present the daily fixing is at 1100 London time), was turned down as creating too much confusion over which fixing should be used as a reference benchmark - though the BBA suggested a European dollar rate could be produced.

 The BBA said that, despite earlier accusations that banks were underestimating their own borrowing costs to avoid appearing weak, it would not take measures to improve data quality, such as complete anonymity, in the face of widespread opposition.

 Changes to the Libor methodology were also dismissed as potentially weakening Libor's reputation as a consistent benchmark. But the BBA held out the possibility of increasing the size of its foreign exchange and money market committee, which oversees the Libor fixings.

See also: BBA begins Libor consultation 
Libor under attack