False submissions of banks' estimated interbank lending rates can have a serious impact on market integrity, and can result in significant losses to consumers and investors, or distort the real economy.
The Commission has today therefore adopted amendments to its proposals for a Regulation and a Directive on insider dealing and market manipulation, including criminal sanctions, initially put forward for agreement to the Member States and the European Parliament on 20 October 2011.
Today's amendments will clearly prohibit the manipulation of benchmarks, including LIBOR and EURIBOR, and make such manipulation a criminal offence.
EU action is necessary because of the cross-border dimension of these benchmarks, the organisations - such as major banking groups - that contribute data to these benchmarks and the financial instruments which can be affected. Without clear EU-level rules, there is a danger that national rules could be circumvented.