Anger at EC proposal plan to make Paris base for Libor

In a statement the EC said it would publish a full proposal in the summer that a number of financial benchmarks, including Libor, should be controlled by the European Securities and Markets Authority.

Esma, based in the French capital, recently published a report that set out principles for benchmark setting processes to prevent a repeat of the Libor scandal.

The draft regulation stated: “Where benchmarks are critical to more than one member state... authorisation and supervision is most effectively carried out by Esma and the proposal therefore grants Esma the appropriate powers.”

Chris Cummings, chief executive of financial services body TheCityUK, said: “The supervision of Libor indices and benchmarking should be carried out by those with the closest knowledge of the market and who demonstrate the best market understanding.