NYSE Euronext to take over scandal-hit Libor

09 July, 2013

New York Stock Exchange operator NYSE Euronext is to take over running the Libor benchmark interest rates that have been at the centre of a global rigging scandal.

An important cog in the world financial system, the rates are a benchmark for some $550 trillion in contracts from complex derivatives to credit card bills, but Libor’s credibility was shaken by revelations that bank traders manipulated them.

NYSE Euronext will take over running Libor from the British Bankers’ Association (BBA) trade body, which has run them since the 1980s, the independent British committee set up to choose the new operator for Libor said on Tuesday.

Libor, the London interbank offered rate, will continue to be regulated by Britain’s financial regulator, according to the Hogg Tendering Advisory Committee.

The appointment “is an important step in enhancing the integrity of Libor” said Martin Wheatley, chief executive of Britain’s Financial Conduct Authority, which has regulated Libor since April.

British and U.S. regulators have fined three banks a total of $2.6 billion and two men have been charged for manipulating Libor and similar benchmark rates. More banks and individuals remain under investigation.

Thomson Reuters, which has calculated Libor on behalf of the BBA since 2005, had also expressed an interest in a role in running Libor.


Leave Your Comment
India Inc Heads Abroad In Search of Cheap Funding

India Inc Heads Abroad In Search of Cheap Funding

Reuters 8 years ago
Indian companies are returning to the overseas debt markets as record low interest rates, improved risk appetite and rebounding investor confidence enable them to raise...
The government to launch new overnight inter-bank benchmark lending rate

The government to launch new overnight inter-bank benchmark lending rate

Ishaan Gera 2 years ago
The government will adopt from July 22 a new method to set the overnight interest rate benchmark that will be based on traded levels instead...
Banksters: The scandals continue

Banksters: The scandals continue

N. Craig Smith 5 years ago
Four years into the economic crisis, a Harris poll of U.S. adults in 2012 found that 70 percent believed “most people on Wall Street would...
No Comments

NYSE Euronext to take over scandal-hit Libor

Powered by WordPress.com VIP