Why NYSE Euronext might not solve the Libor problem - OPINION

Author: | Published: 31 Jul 2013

  • 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...


 

 

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