Business

NYSE Euronext to take over scandal-hit Libor

Published: 8:43 AM, July 10, 2013
Updated: 8:44 AM, July 10, 2013

LONDON — The United States owner of the New York Stock Exchange yesterday announced that it will take over the running of the London Interbank Offered Rate (Libor), the benchmark interest rate at the centre of a global rigging scandal last year..

Libor rates are used as a reference for US$550 trillion (S$703 trillion) in contracts ranging from complex derivatives to everyday credit card bills. Trust was shaken by revelations that traders had routinely manipulated it, prompting an overhaul of the system.

NYSE Euronext will take over Libor from thew British Bankers’ Association for a token £1 (S$1.90) and its focus will be on restoring credibility and integrity to Libor, a source said.

London is not losing oversight of the benchmark that bears its name because the rate will continue to be regulated for the time being by Britain’s Financial Conduct Authority.