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A major brokerage firm plans to launch a new measure of U.S. interest rates in response to concerns about the accuracy of the current benchmark, known as the London interbank offered rate, or Libor.
The rate system, which is being set up by ICAP PLC, a London broker-dealer with offices in New York, is aimed at giving banks and market participants a new gauge of what it costs banks to borrow money. ICAP intends to start publishing the rate, which will be called the New York Funding Rate, or NYFR, as soon as next week, said Lou Crandall, chief economist at Wrightson ICAP.
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