ICMA Centre hosts joint event with Henley Finance Club

The ICMA Centre is delighted to welcome PBC School of Finance students from China’s world renowned Tsinghua University, who have travelled to the UK for a two-week programme of trading, learning, and sight-seeing.

The large fine imposed on RBS last week suggests that a ‘scandal’ took place in the banking world over the setting of LIBOR. Yes – there was probably systematic mis-pricing of LIBOR which enabled some traders and some banks to profit at the expense of others. But the LIBOR issue simply highlights a much wider problem in financial markets which is that many ‘prices’ quoted in markets are not market prices at all. Instead they are prices based on computer models, matrix pricing or sheer guesswork, which may or may not produce ‘accurate’ prices. The reason for using computers models and guesswork is that in many financial products there actually are no transactions at all or very few even over periods of some weeks or months and thus no market prices.

Last week students from the ICMA Centre, Henley Business School participated in a major shipping industry event, in London.