NYSE Euronext subsidiary appointed new administrator of LIBOR

The transfer of administration is expected to be completed by early next year.

New Statesman
NYSE Euronext. Photograph: Getty Images.

NYSE Euronext Rate Administration, a subsidiary of financial markets operator NYSE Euronext (NYX), has been appointed as the new administrator for the London interbank offered rate (LIBOR).

The transfer of the administration from BBA LIBOR, the subsidiary of the British Bankers’ Association (BBA), is expected to be completed in early 2014, following the completion of authorisation of NYSE Euronext Rate Administration by the Financial Conduct Authority (FCA).

The appointment was made following the suggestions of the Hogg Tendering Advisory Committee that was constituted by both HM Treasury and the Financial Conduct Authority (FCA) in September 2012 to oversee the selection of a new LIBOR Administrator and to present its recommendations to the BBA.

NYSE Euronext Rate Administration is tasked with restoring the international credibility of LIBOR. It is expected to leverage NYSE Euronext’s brand, long regulatory experience and technical ability to return confidence to the administration of LIBOR.

The new administrator will also take over the BBA’s existing contracts.

LIBOR, which was created by the BBA, is estimated to serve as the reference point for more than $350tn in global contracts.

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 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.”

Late last year, banking giants Barclays, UBS and RBS were fined for their involvement in the LIBOR scandal.

Exchanges of NYSE Euronext trade equities, futures, options, fixed-income and exchange-traded products have taken place in Europe and the US. NYSE Euronext also operates NYSE Liffe, a European derivatives business.