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.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

Bimco sets up Brussels office

The shipping organization faces the consequence of the EU having in a short time span manifested itself as the trendsetting international legislator within climate, and establishes an office in Brussels, ShippingWatch learns.

Latest news

See all jobs