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IOSCO forms task force to identify benchmark issues

Gary Gensler

The International Organization of Securities Commissions has created the Board Level Task Force on Financial Market Benchmarks to identify and address benchmark-related issues after reports surfaced that some institutions had manipulated Libor, Euribor and Tibor.

The task force is composed of IOSCO members and will be chaired by Martin Wheatley, the managing director of the U.K.’s Financial Services Authority, and Gary Gensler, the chairman of the U.S. Commodity Futures Trading Commission, CPI Financial reports.

The task force will be responsible for identifying benchmark-related problems across the securities and derivatives markets, defining the types of benchmarks used in financial markets and identifying relevant policy issues.

The task force plans to release a consultation report towards the end of the year or early in 2013, though it is expected that the team will need until the first quarter of 2013 to complete its work, according to CPI Financial.

Benchmarks are used to price a number of financial products, including consumer credit cards and mortgages.

“Given the global nature and extensive use of benchmarks in a wide range of financial markets and products, it is important to develop internationally consistent principles that ensure their credibility and integrity,” Wheatley said, CPI Financial reports. “In leading this work, the IOSCO Task Force will collaborate with other international bodies to establish a robust set of principles, where appropriate drawing on lessons learned from the Wheatley Review and other supervisory investigations.”

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