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Libor scandal threatens London shipping dominance

The scandal concerning manipulation of the so-called Libor interest rate could make maritime companies flee from London, heading to Asia instead, should the EU Commission decide to regulate broker reports to the Baltic Exchange, warns the shipping stock market.

Photo: Hanjin

The London-based Baltic Exchange stock market, the data of which is used when setting the freight rates for the majority of all shipping, warns that a possible EU regulation of financial data, following the so-called Libor scandal, could ruin London’s status as a financial center for shipping, writes Bloomberg.

Should the EU start controlling the reports sent to the Baltic Exchange by 50 brokers, used to determine the freight rates for a total of 61 routes, it would not only make many brokers stop sending in reports, but an EU regulation could also send more maritime businesses to Asia, according to a brief from the 268 year old Baltic Exchange, which Bloomberg has been granted access to.

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