Statement by CFTC Chairman Gary Gensler on IOSCO Benchmark Principles
April 16, 2013
Washington, DC – Commodity Futures Trading Commission Chairman Gary Gensler today made the following statement on the International Organization of Securities Commissions (IOSCO) consultation paper on Principles for Financial Benchmarks:
“To promote market integrity, it is critical that benchmark interest rates be anchored in observable transactions and supported by appropriate governance structures. Given what the world has learned about LIBOR, Euribor and similar rates, I am pleased that the IOSCO proposed principles include both of these essential elements. I want to thank the IOSCO members and my co-chair Martin Wheatley for all of their dedication and efforts in developing these principles.
“These principles are a crucial step forward. We also must address market integrity issues arising from structural changes in the unsecured, interbank market. This market has become essentially nonexistent, particularly in longer tenors.
“Thus, I support that international regulators and market participants have begun to discuss appropriate alternatives and possible approaches to a smooth and orderly transition from LIBOR, Euribor and similar rates.”
The IOSCO consultation paper can be found here: http://www.iosco.org/news/pdf/IOSCONEWS276.pdf
Last Updated: April 16, 2013