The administration of the scandal-plagued Libor
interbank lending rate is to be taken over by NYSE Euronext, the
owner of the New York Stock Exchange, the British Treasury said
Several large banks including Barclays, RBS and UBS were fined last year after they were found to have manipulated the interest rate to their advantage.
An independent committee set up by the treasury in the wake of the scandal had recommended that the British Bankers' Association (BBA) hand over administration of the rate to NYSE Euronext, the treasury said.
"This change will play a vital role in restoring the international credibility of Libor," said Sarah Hogg, who chaired the committee.
The new body will be called NYSE Euronext Rate Administration, will be based in Britain and regulated by its Financial Conduct Authority.
The Libor (London Interbank Offered Rate) is calculated daily in London and is supposed to show at what rate banks are being charged to borrow from each other.
It is used as a benchmark for contracts all over the world, ranging from mortgages to credit card bills.
Anthony Browne, head of the BBA, welcomed the news: "Restoring confidence in Libor has been an absolute priority for the BBA since I took over as chief executive last year."
"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," he continued.
The transferral of responsibility for administering the rate is expected to be completed by early 2014.
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