The UK government is set to make manipulation of commodities and Foreign Exchange benchmarks an illegal act. The Conservative government is desperate to revive confidence in the UK financial sector as it comes under pressure from emerging centres in the East.
The government lead review, which starts today, will have to decide if they wish to extend legislation regulating the Libor market to other benchmarks including gold, oil and currencies. The Conservative government hopes to have the legislation passed by the end of 2014 in preparation for the 2015 general election.
The UK financial sector was tainted following the libor scandal and in March of this year Barclays Bank was fined £26m for allowing one of their traders to manipulate the gold price. In total 10 financial institutions have been fined $6.5 billion for manipulating financial benchmarks since the economic crisis of 2008.