2  Details on the principles may be found in Board of the International Organization of Securities Commissions (2013), Principles for Financial Benchmarks: Final Report (PDF) (Madrid: Board of IOSCO, July). 3  For the FSB’s reform proposals, see Financial Stability Board (2014), Reforming Major Interest Rate Benchmarks (PDF) (Basel, Switzerland: FSB, July).
Unlike in the case of arbitrage, these price gaps are notional – indeed, “speculative”. They are often large only because they are not suitably discounted for risk. When on 15 September 2008, Lehman Brothers filed for bankruptcy, the turmoil that had started a year earlier turned into an avalanche.