Benchmark Independence

Benchmark Independence

Benchmarks are at the heart of the financial system. They play a critical role for participants globally, from determining bank borrowing costs to providing fund managers with ways to gauge portfolio performance. Recently, however, market participants have rightly become concerned about the transparency and independence of some benchmarks, specifically in the fixed income, currency and commodity markets. Banks have traditionally been responsible for calculating and governing these indexes, but the LIBOR scandal and other questionable activity has caused investors and regulators to seek independent partners to assume responsibility for indexes.

Bloomberg was founded on the principle that markets need transparency that can best be provided by neutral parties to enable fair and equal access to all participants. That notion remains core to our business today, and it’s why we see both an opportunity and responsibility to assume a greater role in providing independent indexes.