Brugler, J.Khomyn, M.Putniņs̆, T.2025-10-282025-10-282025Journal of Financial Economics, 2025; 168:104018-1-104018-140304-405X1879-2774https://hdl.handle.net/2440/148032Financial benchmarks such as LIBOR underpin the pricing of trillions of dollars of contracts around the world. We evaluate the quality of benchmark prices using a state-space model to separate information from noise. Applying the method to LIBOR benchmarks and their replacements, we find that alternative reference rates (ARRs) are less noisy in four of the five currencies. However, the USD ARR is considerably more noisy, resulting in billions of dollars of noise-related wealth transfers between contract counterparties. We show that benchmark reforms such as expanding the reference market and using a trimmed mean can reduce noise in ARRs.en© 2025 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).Benchmark prices; Information shares; Price discoveryJournal article10.1016/j.jfineco.2025.104018733589Khomyn, M. [0000-0002-4244-6663]