In the past traders and anyone else involved in setting the bank bill swap have joked about the possibility of doing time as they entered their buy and sell rates from the trading desk. But now it's no joke.
The prospect of going to jail is a step closer for anyone found guilty of manipulating a financial benchmark index, or any financial product linked to an index.
Both criminal and civil action can now be brought against anyone who gets caught ripping off their clients and think they are above the law.
If there was any doubt about the Australian Securities and Investments Commission doing it all it could to protect investors from individual and corporate rogues then the latest set of rules puts an end to that.
But it might also make everyone involved in something like BBSW – a key benchmark interest rate used to price billions of dollars of bills, bonds, loans and derivatives – to run for cover.
Nobody will want a bar of it.
Although ASIC also now has the power, as a last resort any way, to compel contributors to put rates in, the whole process is going to make a lot of dealing rooms very nervous.
Just who will want to risk criminal and civil charges, regardless of that big bonus that might be on offer?
One of the most coveted jobs in the dealing room has just become a poisoned chalice.
And therein lies a problem.
One of the big issues for the past year or so has been the lack of trading and liquidity behind the rate set. No one wants to be involved for fear of being caught up in any scandal.
Trust between the banks is at a low ebb and it's easier just to stay away.
The BBSW index has really been in limbo and most industry players agree that's not a healthy sign of a robust and transparent financial market.
The prospect of jail time is hardly going to entice everyone back into the game.
Making it tough for regulators has been the poor perception from the general public.
Ever since the global financial crisis there has been a school of thought that says when it comes to imposing penalties for poor behaviour at banks, it always seems the penalties handed out were like getting slapped on the wrist with a wet lettuce.
Despite the millions of dollars in salaries and bonuses there has always been one question left unanswered: Why are the bankers not in jail?
This time last year former US Federal Reserve chairman Ben Bernanke said that more corporate executives should have been prosecuted for their actions leading up to the 2008 financial crisis.
Now, here in Australia, the prospect of going to jail looms large.
