Australia plans new interbank rate-setting scheme by end-2016

Sydney

AUSTRALIA will move to a new process by the end of this year for setting its credit market reference rate, even as the corporate regulator reportedly prepares to launch its first civil action for attempted rate rigging.

The changes, contained in a discussion paper from the Council of Financial Regulators (CFR), are intended to minimise the risk of manipulation facing Australia's BBSW bank bill swap rate, which sets the price of money market funds.

The CFR is a consortium of the Australian Securities and Investments Commission (Asic), the Australian Prudential and Regulatory …