Benchmark-Manipulation

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Abstract LIBOR, ‘the world’s most important number’, is the most widely used interest rate benchmark in connection with financial contracts with an outstanding value of more than 300 trillion US dollars. However, its susceptibility to manipulation, conflicts of interest and weak governance structures led to one of the biggest manipulation scandals in the financial sector. From 1st January 2018 on, the self-regulatory system for benchmarks came to an end in the European Union with the introduction of a new European regulation. Starting with an economic analysis of the conflicting nature of benchmark structures, this thesis shows the ineffectiveness of the ex ante and ex post regulatory framework that existed previously. Its final part examines whether the introduction of the Market Abuse Regulation (EU) 596/2016 and the Benchmark Regulation (EU) 2016/1011 is an adequate means of closing the existing loopholes.