NYSE Euronext to Take Over LIBOR

NYSE Euronext to Take Over LIBOR

United Kingdom regulators announced today that NYSE Euronext will be the new LIBOR administrator. According to a press release from the "independent Hogg Tendering Advisory Committee," the British Bankers' Association, or BBA, has accepted its advice for NYSE Euronext to take over LIBOR management by early 2014.

"At the time of its publication, NYSE Euronext welcomed the findings of the Wheatley Review of LIBOR and today we are delighted to have been selected by the Hogg Tendering Advisory Committee to become the new administrator for LIBOR," said NYSE Liffe CEO Finbarr Hutcheson in a statement. "We look forward to working with BBA LIBOR Ltd in completing the smooth transition to NYSE Euronext Rate Administration Limited, and continuing the process of restoring credibility, trust, and integrity in LIBOR as a key global benchmark."

The Wheatley Review is a set of recommendations put forth by the Financial Conduct Authority, or FCA, following the recent LIBOR manipulation scandal.

"Today marks a significant step in implementing the recommendations in my review of LIBOR," said FCA Chief Executive Martin Wheatley in a statement. "The FCA has already introduced a number of improvements in the way LIBOR is set, and we expect NYSE Euronext Rate Administration Limited to develop further the oversight and governance of LIBOR. Benchmarks are an important tool that enable a wide range of markets to function effectively. The selection of a new administrator, who will need to be authorized and then subject to ongoing scrutiny by the FCA, is an important step in enhancing the integrity of LIBOR."

The final authorization for the transfer will come from the FCA, and LIBOR administration will still ultimately fall under the authority's regulatory oversight.

The article NYSE Euronext to Take Over LIBOR originally appeared on Fool.com.

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Originally published