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NYSE Euronext appointed Libor administrator
11 July 2013
Appointment to restore trust and credibility in the Libor benchmark
NYSE Euronext Rate Administration has been appointed as administrator of Libor, as part of efforts to restore trust and confidence in the benchmark.
NYSE Euronext Rate Administration Limited was selected to take over from current Libor administrator BBA Libor – a subsidiary of the British Bankers' Association (BBA) - by the independent Hogg Tendering Advisory Committee, with the transfer of duties expected to be completed by early 2014.
The Wheately Review was set up by the UK government in summer 2012 to investigate the rate-setting framework of Libor following revelations of rate-fixing. The Review recommended that the Hogg Tendering Advisory Committee, with support from HM Treasury and the Financial Conduct Authority, look to replace BBA Libor as administrator of Libor.
Finbarr Hutcheson, CEO of NYSE Liffe, said. “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.
We look forward to working with BBA Libor 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.”
Martin Wheatley, chief executive of the FCA, who led the Wheatley Review, said the announcement was “a significant step”. “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 authorised and then subject to on-going scrutiny by the FCA, is an important step in enhancing the integrity of Libor”.