NYSE Euronext subsidiary NYSE Euronext Rate Administration has been selected ahead of the London Stock Exchange as the new administrator of Libor. The transfer of administration of the benchmark from BBA Libor, a subsidiary of the British Bankers’ Association (BBA), follows an outbreak of attempts to manipulate Libor for financial gain last year and is expected to be complete when the Financial Conduct Authority (FCA) finalises authorisation of NYSE Euronext Rate Administration in early 2014.
The BBA says it will work constructively with the new administrator to ensure a smooth transition and that it has already worked hard to implement the findings of the Wheatley Review that was set up after wrongdoing was found. BBA chief executive Anthony Browne says: “Restoring confidence in Libor has been an absolute priority for the BBA. We have been working hard with regulatory authorities and the government to put in place much-needed reforms to the system. The new administrator will take over a benchmark with better regulatory oversight and improved governance.”
Finbarr Hutcheson, CEO of the London derivatives exchange NYSE Liffe, adds: “We look forward to working with BBA Libor in completing the smooth transition to NYSE Euronext Rate Administration and continuing the process of restoring credibility, trust and integrity in Libor as a key global benchmark.”
Thomson Reuters, which supported the BBA in calculating Libor after the discovery of wrong-doing, states: “Thomson Reuters has worked closely with the BBA, FCA and HM Treasury throughout the process of reforming Libor and welcomes the appointment of the new administrator. We will continue to support the calculation and distribution of Libor during the transition period.”