LIBOR manipulation scandal (2012–2017)
Banks including Barclays, UBS, and Deutsche Bank were fined for rigging LIBOR submissions. Regulators on both sides of the Atlantic concluded that quote-based benchmarks were vulnerable to manipulation.
Record fines and criminal prosecutions. Global regulators formed the Financial Stability Board to reform benchmarks.
Governments pushed markets toward transaction-based overnight rates, starting the IBOR exodus that continues with CDOR and TIIE.
The same global reform effort drives today's CFTC rule — replacing quote-based CDOR and TIIE with overnight, near-risk-free rates.
