No imminent plans to replace Libor with trade-based index: Administrator

Replacing the quote-based Libor with an index drawing on actual market trades will not happen any time soon, the benchmark’s new administrator said yesterday.

The London Interbank Offered Rate (Libor) is compiled from quotes by banks of the rate they believe they would pay to borrow from another bank.

Barclays, Royal Bank of Scotland, and others have been fined for manipulating Libor, sparking calls from the US, where the rate is a reference in home loans, for an index based on actual market transactions.