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Similar case in the rates world is LIBOR fixing. It's an outdated scheme that managed to escape regulatory attention for a very long time. By design there is a
by thkim 8y ago
Similar case in the rates world is LIBOR fixing. It's an outdated scheme that managed to escape regulatory attention for a very long time. By design there is a trust issue yet so much of the global financial system depended upon it. I have left finance years ago, but there was a movement to move away from LIBOR as funding index. I'm not sure if that ever happened.
- nothrabannosir 8y agoFwiw, from an outsider's perspective, I hear more and more grumbling about LIBOR, lately. Disilliusionment with it is reaching the main stream, for better or for worse.
- zhte415 8y agoLIBOR met the mainstream decades ago, in the 80s and 90s a nice guideline, and ended up pre-financial crises with adoption of financial models that balanced on the edge of single basis points that depended on a single digit that a not very well paid team calling traders, that might or might not answer their phones, and might or might not care to give an accurate number, but when a number it was not to single basis-point accuracy, just a number from the floor. The people playing with complex quantitative systems that depended on single basis points had no idea of the integrity of the data they were playing with if they were using LIBOR. The conclusion I got was: Get out of your code and check your data and how much you trust it. Then get back in with a whole load of caveats.
- lucozade 8y agoLIBOR is being replaced by SOFR and its siblings. They're starting to get reasonable traction.