NYSE Euronext, owner of the New York Stock Exchange is to take over control of the benchmark London Interbank Offered Rate (Libor) to remove it from UK oversight, according to reports.
The group has beaten off competition from other contenders such as Thomson Reuters, Bloomberg, the London Stock Exchange (LSE) and Markit to win the contract, a Sky News report suggested. It added that an announcement on Libor will be made later on today, with the UK Treasury understood to be coordinating the confirmation in London.
The buyer will reportedly pay a token sum of £1 to acquire British Bankers’ Association (BBA) Libor, the company previously tasked with administering the scandal-plagued rate.
Sky commented that the choice of a US company to oversee the crucial benchmark rates is significant because of the fierce criticism of Libor’s oversight by US regulators.
To date three banks – Barclays, Royal Bank of Scotland and UBS – have been fined more than £1.5bn by regulators for their role in the global rate-rigging scandal, and a number of others are waiting to settle.
The Treasury’s decision comes shortly ahead of an impending change of ownership for NYSE Euronext. The transatlantic group is awaiting final regulatory approval for its US$10bn cash-and-shares bid
from US derivatives group IntercontinentalExchange
, announced last December.
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