IBA consults on enhancements to LIBOR: IBA has published a paper setting out the key findings and improvements during its time as LIBOR administrator. The paper also consults on further enhancements to the LIBOR submission process, including:

  • a more prescriptive calculation methodology based on predefined parameters;
  • using transactions that reflect the interbank market in recent years; 
  • a waterfall methodology for when there are insufficient transactions;
  • allowing submitters to use transactions in all representative locations;
  • allowing all wholesale and professional entities to be regarded as eligible counterparty types; 
  • a wider window for eligible transactions; and
  • restricting the use of expert judgment to situations where it is the last resort.

IBA asks for comments by 19 December. (Source: ICE Publishes Paper on Enhancements to LIBOR)