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Tuesday, July 9, 2013
Libor moving to NYSE Euronext - Jul. 9, 2013
NYSE Euronext will take over and run the scandal-plagued Libor interest rate starting in early 2014.
The UK controls Libor through laws made in the UK Parliament. The Financial Services Act 2012 brings Libor under UK regulatory oversight and creates a criminal offence for knowingly or deliberately making false or misleading statements relating to benchmark-setting. The only thing that will change is who does the task of calculation and administration of the rate, previously it was Thomson Reuters and the BBA, now it will be NYSE Euronext, based in London through a new subsidiary regulated by the UK's Financial Conduct Authority. The real story here is the other significant reforms undertaken to restore the credibility of Libor.
The UK controls Libor through laws made in the UK Parliament. The Financial Services Act 2012 brings Libor under UK regulatory oversight and creates a criminal offence for knowingly or deliberately making false or misleading statements relating to benchmark-setting. The only thing that will change is who does the task of calculation and administration of the rate, previously it was Thomson Reuters and the BBA, now it will be NYSE Euronext, based in London through a new subsidiary regulated by the UK's Financial Conduct Authority. The real story here is the other significant reforms undertaken to restore the credibility of Libor.
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