NYSE Euronext announced on Tuesday that its subsidiary, NYSE Euronext Rate Administration Limited, has been appointed as the new administrator of the controversial benchmark London interbank offered rate known as Libor.
The transfer of the administration from BBA LIBOR Ltd, a subsidiary of the British Bankers' Association (BBA) whose members are some of the largest banks in the world, is expected to be completed in early 2014, according to the announcement.
The deal needs the authorization of the British Financial Conduct Authority (FCA) by which NYSE Euronext Rate Administration Limited will be regulated.
Libor, which helps determine the cost of short-term loans among banks around the world, has been rigged recent years by many well-known banks for their own benefits.
British authorities selected NYSE Euronext Rate Administration Limited as the new administrator in an attempt to restore Libor's international credibility.
NYSE Euronext said in the press release that its subsidiary responsible for managing Libor will be able to leverage its trusted brand, long regulatory experience and market-leading technical ability to return confidence to the administration of Libor.
NYSE Euronext is a leading global operator of financial markets and provider of innovative trading technologies. The operator of the New York Stock Exchange is also in the process of being taken over by IntercontinentalExchange Inc., an American company that operates exchanges around the world.