Barclays Capital has become one of the first banks to put its name publicly to the development of alternative benchmarks to the London Interbank Offered Rate, which banks use to set the terms of swap transactions as well as their lending, amid a charged debate into the accuracy and efficacy of Libor for some trades.

BarCap, the investment banking arm of UK bank Barclays, is backing moves by market participants to use the European Overnight Index Average, the weighted mean rate of all unsecured Euro overnight cash transactions brokered in London, as an alternative to Libor for European Government bond transactions.