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Martinghoul
Posts: 3255
Joined: July 18th, 2006, 5:49 am

Re: Barclays and the LIBOR cartel

July 28th, 2017, 2:24 pm

Nobody has a clue about how it all evolves from here...
 
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MHill
Posts: 488
Joined: February 26th, 2010, 11:32 pm

Re: Barclays and the LIBOR cartel

July 28th, 2017, 2:29 pm

I've asked ICE if they have an official comment on it.  Waiting to hear back.
 
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ISayMoo
Posts: 2294
Joined: September 30th, 2015, 8:30 pm

Re: Barclays and the LIBOR cartel

July 29th, 2017, 6:34 pm

AFAIK the ISDA master agreements include clauses about what to do if the benchmark referred to in the contract stops being published.

My guess is that increased OTC trade reporting will make un-traded benchmark rates irrelevant. It won't be a problem for e.g. IHS Markit to take all swap contracts executed today and publish a consensus yield curve which fits them best. Presto, a benchmark rate for any tenor...
 
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MHill
Posts: 488
Joined: February 26th, 2010, 11:32 pm

Re: Barclays and the LIBOR cartel

August 3rd, 2017, 8:03 am

 
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BigAndyD
Posts: 73
Joined: July 10th, 2013, 12:32 pm

Re: Barclays and the LIBOR cartel

August 3rd, 2017, 8:32 am

 
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MHill
Posts: 488
Joined: February 26th, 2010, 11:32 pm

Re: Barclays and the LIBOR cartel

August 15th, 2017, 7:57 am

FYI, conversation with ICE:

ICE:
"Dear ,
 
ICE Benchmark Administration (IBA) welcomes Andrew Bailey’s comments on 27 July, which will help to ensure the transition to our evolved LIBOR. Users want an IOSCO-compliant, trusted rate, that is available every day for the entire curve.  IBA is actively working on evolving LIBOR so that it is based on banks broad wholesale funding and minimises the use of subjective judgement unless necessary - to ensure that the rate can continue to be calculated even in the most extreme market conditions where transactions might not be available.
 
Having consulted with regulators and over 1000 market participants, we believe that the evolved LIBOR has a long term sustainable future that will continue beyond 2021.
 
For reference, here is the original speech by Andrew Bailey of the FCA: https://secure.ice/?https://www.fca.org ... e-of-libor
 
Kind regards,"


Me:
"Thanks for your reply .
 
I can be a little slow on the uptake sometimes, so please make allowances!
 
So your expectation is that (despite Mr Bailey suggesting that alternatives to Libor will be needed)  ICE / IBA will continue to produce a Libor rate, suitable for basing ICE derivative products on, past 2021.  And on this basis, you would not expect to be retiring Libor based derivative products?
 
Thanks again for your help,"

ICE:
"Hi ,

 
I can only speak on behalf of ICE Benchmark Administration and we fully expect to continue to produce LIBOR beyond 2021. However as long as LIBOR is being produced and remains relevant, then I would expect exchanges to continue to offer derivatives products based on LIBOR.
 
Kind regards,"
 
 
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ppauper
Posts: 70239
Joined: November 15th, 2001, 1:29 pm

Re: Barclays and the LIBOR cartel

May 19th, 2018, 6:11 am

Barclays Trader Admits He Was "Paid 400,000 Pounds A Year To Be A Tea Boy"
someone claiming he didn't know anything about the market rigging and was only there to get tea for the real traders
 
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ppauper
Posts: 70239
Joined: November 15th, 2001, 1:29 pm

Re: Barclays and the LIBOR cartel

May 19th, 2018, 8:06 am

for some reason, the barclays traders make me think of this
 
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tagoma
Posts: 18354
Joined: February 21st, 2010, 12:58 pm

Re: Barclays and the LIBOR cartel

May 19th, 2018, 8:21 am

Barclays Trader Admits He Was "Paid 400,000 Pounds A Year To Be A Tea Boy"
someone claiming he didn't know anything about the market rigging and was only there to get tea for the real traders
I can't get why people go to zerohedge website.
 
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tw
Posts: 1174
Joined: May 10th, 2002, 3:30 pm

Re: Barclays and the LIBOR cartel

May 19th, 2018, 8:25 am

Barclays Trader Admits He Was "Paid 400,000 Pounds A Year To Be A Tea Boy"
someone claiming he didn't know anything about the market rigging and was only there to get tea for the real traders
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