The City regulator, as it published a consultation document on implementing the changes to Libor recommended by one of its top executives Martin Wheatley, opened up for debate how the number of banks providing rates to Libor can be increased to 20 institutions.
At the moment up to 18 banks provide submissions to Libor, which is to be regulated for the first time since the scandal over Libor fixing led to a record £290m fine on Barclays in June.
The FSA is also leaving open the option for other benchmark indices, such as those in the commodities market, being brought into the regulatory regime at a later date. Administrators will now be required to monitor submissions to Libor in an effort to avoid incidents, which emerged during the Barclays fine, of traders offering each other bottles of Bollinger to set prices.
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