Following the 14-year jail sentence of a former City of London trader convicted of rate-fixing, basing indexes on bank-supplied estimates has had its day, the chief executive of the London Stock Exchange Group told CNBC on Wednesday.
"The days of survey-based indices are over," CEO Xavier Rolet told CNBC, after the stock exchange and financial information company posted a boost in first half earnings.
"We are in the process of moving from the old days, where, if you want, these indices and these benchmarks were computed in a survey-based fashion between individuals communicating judgment-based opinion as to where they should be, to an electronic world… where everything is electronic, can be traced, can be audited."
Tom Hayes was sentenced in London on Monday for conspiring to manipulate Libor, or the London interbank lending rate, which is used as the basis for setting financial contracts around the world. It is based on the rate at which leading banks are willing to lend to one another.