The Council of Financial Regulators has published a consultation paper regarding regulatory reform of the BBSW and financial benchmarks. The paper consults on proposals relating to benchmark administration, submission and misconduct. This follows the CFR’s consultation regarding the bank bill swap rate (BBSW) to ensure that it remains a reliable and trustworthy benchmark in future.

ASIC has recently investigated and taken legal action against the ANZ Bank and Westpac Banking Corporation (Westpac) for alleged manipulation of the BBSW.

Following action against the ANZ Bank ASIC has announced it has commenced legal proceedings in the Federal Court against Westpac for unconscionable conduct and market manipulation in relation to Westpac’s involvement in setting the BBSW in the period 6 April 2010 and 6 June 2012.