CFTC's Gensler calls for independent compiler of Libor

BRUSSELS, Sept 24 Mon Sep 24, 2012 10:23am EDT

BRUSSELS, Sept 24 (Reuters) - Independent bodies such as those set up to record derivatives transactions could collect market trades as part of efforts to reform and restore confidence in the Libor benchmark interest rate, a top U.S. regulator said on Monday.

Gary Gensler, chairman of the Commodity Trading Futures Commission, told members of the European Parliament that he favoured moving towards "real observable transactions and an independent body collecting that data".

Gensler called for the creation of "firewalls or separation between the trading desk that can profit" so that trading desks are unable to influence submissions that go towards setting the London Interbank Offered Rate (Libor).

"At Barclays there were trading desk in London and Tokyo and New York, they were all trying to influence the submitters when they made their submissions," he said in reference to Libor.

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