It’s been a rough few years for
benchmark rates. While scandals concerning the London Interbank
Offered Rate (Libor) and currency benchmarks have attracted the
most attention, they should not overshadow similar problems
faced by the so-called ISDAFix, which provides swap rates for
transactions in the world’s biggest financial
Big cities, major corporations, governments,
insurers and pension funds are just a few of the institutions
that use interest rate swaps to manage their exposure to
interest rates. The annual volume of interest rate swaps is
about 100 times bigger than the US federal budget.
So it was a shock when, around a year ago, that crusading
financial market publication Rolling Stone Magazine reported
that the Libor scandal had a double. Regulators on both sides
of the Atlantic...