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EU Should Rely on Transactions for Indexes, Barnier Says

Tighter supervision of how banks calculate benchmark indexes is unlikely to lead to rules which ban the use of estimates rather than actual transactions, European internal markets Commissioner Michel Barnier said Monday.In an e-mailed statement, Mr. Barnier said he will present his colleagues in the European Union's executive a legislative proposal before the summer, which will aim to increase transparency and reduce conflicts of interest in the way benchmarks are calculated.The proposal is the European Commission's response to the Libor rate-fixing scandal, which has seen several major banks pay large fines for fixing interest rate indexes. The EU's antitrust authorities are also carrying out a probe into possible bank cartels to influence Libor, the London Interbank Offered Rate, Euro Interbank Offered Rate and Tibor, the Tokyo rate."Benchmarks underpin lots of contracts. As concerns the representativiness of the underlying data, I'm of the opinion that to the greatest extend possibl...

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