The London Interbank Offered Rate (LIBOR), currently owned by a British banking firm, is being sold to NYSE Euronext, the U.S. company that runs the New York Stock Exchange.
The independent Hogg Tendering Advisory Committee appointed NYSE Euronext Rate Administration Limited—a NYSE Euronext subsidiary—as the new administrator for LIBOR, according to the July 9 announcement.
BBA LIBOR Ltd, a subsidiary of the British Bankers’ Association, is currently the administrator. The transfer of administration is expected to be completed in early 2014 once the Financial Conduct Authority’s authorization of NYSE Euronext Rate Administration Limited is complete.
Hogg Tendering Advisory Committee supervised the selection of a new LIBOR Administrator under mandate from the British Treasury and FCA in the wake of the LIBOR scandal, in which several banks were found to have been manipulating interest rates.
“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 Finbarr Hutcheson, CEO of NYSE Liffe. “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.”
Written by Alyssa Gerace