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7/21/12

EU to amend law to make Libor rigging illegal

Manipulating market benchmarks in the European Union would be illegal under a draft law being proposed next week after Barclays' admission of rigging the London-based Libor rate, the EU's executive body said on Friday.

The European Commission said it would extend its draft law on tackling market abuses which is currently awaiting approval from the European Parliament and member states.

"Next Wednesday the Commission will adopt amended proposals on insider dealing and market manipulation, to include specific provisions prohibiting the manipulation of market-based benchmarks, and to make such manipulation a criminal offence," Commission spokeswoman Pia Ahrenkilde Hansen told a regular briefing in Brussels.

EU commissioners Viviane Reding, in charge of justice, and Michel Barnier, who oversees financial regulation, will present the amendments on Wednesday to impose criminal penalties on manipulation.

Note EU-Digest: better late than never...

Read more: EU to amend law to make Libor rigging illegal | Reuters

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