London fix on the way to the scrapheap as volumes plunge
The Wall Street Journal reports that trading volumes at the London fix (1600 GMT) have fallen sharply since probes into manipulation.
“Asset managers raised concerns that volumes traded at the 4 p.m. WM/Reuters fix are dropping like a stone,” said one participant. “This is a problem for the industry because assets are calculated against the benchmark.”
I don’t see how it’s a problem ‘because assets are calculated against the benchmark’. The benchmark is arbitrary and was manipulated so, if anything, it should be less of a problem. One worry is that less volume at the fix makes it even easier to manipulate if someone out there is still banging away.