Can NYSE Euronext fix Libor?

Author: Gemma Varriale | Published: 31 Jul 2013
  • NYSE Euronext’s appointment as the new Libor administrator has raised concerns among market participants;
  • Lack of neutrality of the third party administrator is one widely reported issue;
  • But some believe the real issue is not a conflict of interest, but how that conflict will be managed. The guidance is notably silent on this;
  • Compared to both the UK and US, Singapore has made a far more credible effort to protect the integrity of the scandal-plagued benchmark;
  • Another key concern to emerge was that NYSE Euronext may have been appointed to appease the US.

NYSE Euronext has been appointed the new administrator for the London Interbank Offered Rate (Libor). The plan to transfer administration of a British institution to a US company has been greeted with scepticism by key market participants.

Libor serves as the reference point for more than $350 trillion in global contracts. The banks that help set...