- On one level the decision to award thecontract to
administer the London Interbank Offered Rate (Libor) to NYSE
Euronext represents an attempt at shrewd short-term
politics;
- But the move also raises a hornet nest
ofquestions over how the entity is to manage inherent and
extensive conflicts ofinterests;
- What’s more the manner in which the
tenderprocess was managed raises alarming questions about the
extent to which UK regulatoryagencies have responded to the
evidence provided in their own reviews of
pastpractice.
On one level the decision to award the contract to
administer the Libor to NYSE Euronext represents an attempt at
shrewd short-term politics. Given the fact that trillions of
dollars in derivative contracts benchmark Libor, how it is
calculated, monitored and enforced is critical to rebuilding
trust and confidence in...