BRUSSELS, Sept. 5 (Xinhua) -- The European Commission is seeking public opinions on integrity of benchmark indices like LIBOR, said the Commission on Wednesday.
According to the statement issued by the Commission, the consultation would cover all benchmarks, not just interest rate benchmarks such as LIBOR, but also commodities and real estate price indices as well.
"The integrity of benchmarks is critical to the pricing of many financial instruments, such as interest rate swaps, and commercial and non-commercial contracts, such as loans and mortgages, and risk management." said an EU document.
Michel Barnier, Commissioner for Internal Market and Services, hinted in his speech the consultation was also a result of EU's probe into LIBOR scandal. "The international investigations underway into the manipulation of LIBOR have revealed yet another example of unacceptable behavior by banks," he said.
"Doubts about the accuracy and integrity of indices can undermine market confidence, cause significant losses to consumers and investors, and distort the real economy. " said Barnier.
The consultation would last till November 15th.