Nyse Euronext to take control of Libor

Nyse Euronext has beaten off competition from financial information vendors to take control of the London Interbank Offered Rate.

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Nyse Euronext to take control of Libor

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The trans-Atlantic exchange is understood to be paying a token £1 to acquire BBA Libor Ltd from the British Bankers Association, which was previously responsible for setting the benchmark.

The move should appease US regulators, which strongly condemned the previous process, in which banks were found to be fabricating their voluntary contributions in order to manipulate the published rates.

The scandal triggered a worldwide review of other benchmark rates by regulators around the world and a scramble by financial information suppliers to step into the breach.

Thomson Reuters last month won a contract from the Singaporean Monetary Authority to supply actual transaction data to calculate benchmark currency rates in the wake of a rate-rigging exercise involving up to 133 traders from 20 banks on the island state.

For Libor, Nyse Euronext is setting up a new subsidiary - Nyse Euronext Rate Administration Ltd - with a view to getting the service up-and-running by early 2014, subject to approval by the Financial Conduct Authority.

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