Martin Wheatley, head of an independent review into Libor which has been set up by the Government, has published a discussion paper with his initial proposals.
This sets out analysis on the role that Libor plays in the financial markets, the flaws in the current structure of Libor, its governance and oversight and various options for reform.
Libor (London Interbank Offered Rate) is the reference rate banks charge when lending to each other.
Mr Wheatley said: "It is clear that regardless of the outcome of ongoing international investigations, trust in a vital part of the financial system has been badly damaged and timely action is needed to repair it.

"Today we are taking the first step in the process by launching the Wheatley Review discussion paper, which seeks responses from a wide range of market experts and international stakeholders. This review aims to ensure that Libor is reformed in whichever way fully restores credibility and trust."
Mark Hoban, financial secretary to the Treasury, said: "This discussion paper demonstrates that we will give regulators the powers they need to prevent the manipulation of key benchmark rates in the future. This review will report by the end of the summer in time for any necessary changes to be taken forward in legislation.
"The Government is also working with its international partners to inform the international work in this area and work towards a globally consistent solution."
The paper can be viewed here and is open for consultation for four weeks until 7 September.