ATHE of new rules over forex, commodities and interest rate benchmarks will be decided by incoming Bank of England deputy governor Minouche Shafik – before she even officially takes up the role.
George Osborne will tonight give her and City watchdog chief Martin Wheatley control of a new body overseeing the regulation of the benchmarks in the wake of the Libor and FX fixing scandals.
The pair will tell the Treasury which benchmarks need more regulation by the autumn, and politicians then aim to legislate for that by April 2015. By June next year the report will conclude.
“The integrity of the City matters to the economy of Britain,” the chancellor is expected to say in his Mansion House speech tonight.
“Markets here set the interest rates for people’s mortgages, the exchange rates for our exports and holidays, and the commodity prices for the goods we buy.
“I am going to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them,” he will say.