Financial Benchmarks – Bedeutung und internationale ­Regulierungsbestrebungen

The manipulation scandals surrounding the key interest rate LIBOR and benchmarks used in foreign exchange trading have rendered financial benchmarks a regulatory phenomenon. While they all serve a similar purpose, i.e. to provide a reference in a wide range of financial transactions, financial benchmarks vary significantly in their importance, data basis, underlying market and determination processes. This article discusses the conflicts of interest, susceptibility to manipulation and importance typical to financial benchmarks. It outlines initiatives both by the international community and the European Union to submit financial benchmarks to certain regulatory constraints and makes a case for a Swiss benchmark regulation tailored to the idiosyncrasies of the local market.