BlackRock Inc., the world’s largest asset manager, warned against over-regulation of market indexes in the wake of the London interbank offered rate (Libor)-rigging scandal, Bloomberg News reported yesterday. Most indexes are based on transaction data and would be burdened by extra costs if they are subjected to regulation, BlackRock managing directors Richard Prager and Stephen Fisher said in a response to proposals from the International Organization of Securities Commissions on reforming global benchmarks. Global regulators are working on alternatives to Libor after U.S. and U.K. officials uncovered attempts by banks to manipulate the benchmark rate. Royal Bank of Scotland Group Plc, UBS AG and Barclays Plc have been fined a total of about $2.5 billion and at least a dozen firms remain under investigation.
