Brussels, November 25 European Union negotiators reached a preliminary agreement today on new rules to stop the rigging of market benchmarks, after attempted manipulation of the Libor and Euribor interest rates indexes by banks. The EU executive arm had proposed stricter rules in 2013 but concerns about impact of the new regulation, particularly on the use of US benchmarks in Europe, delayed further progress on the issue. The deal struck early today between EU lawmakers, the European Commission and representatives of EU states will allow third-country indexes to continue being used in the EU ‘while ensuring that European benchmark administrators will not be disadvantaged’, a statement from Luxembourg, which holds the rotating EU presidency, said. Foreign indexes would, however, have to apply for ‘recognition’ or ‘endorsement’ to continue being used in the EU, it said. The new rules agreed will also introduce a tailored supervision of benchmarks ‘appropriate to their size and to their nature’. Several international banks have been fined since the first rigging of Libor was uncovered in 2011. By manipulating the indicator, banks were able to reduce losses or make higher profits altering the pricing of financial products linked to benchmarks, including derivatives and student loans. When applied, the new rules will strengthen confidence in financial markets ‘preventing new manipulation scandals’, Luxembourg’s Finance Minister Pierre Gramegna said. Technical aspects of the agreement still need to be sorted out, a Commission official said, and representatives of the 28 EU states will have formally to endorse it on December 9.