A new body has been appointed to administer Libor – the London Interbank Offered Rate.
A subsidiary of the Intercontinental Exchange Group (ICE), a global network of exchanges and clearing houses, has been appointed to ensure Libor cannot be rigged by banks again.
The Financial Conduct Authority has authorised ICE Benchmark Administration (IBA) to do the job from 1 February.
Libor is the rate at which London banks lend short-term money to each other.
The British Bankers’ Association was stripped of its Libor-setting role in 2012 following a series of rate-rigging scandals that led to multi-million pound fines for a number of international banks.
The Wheatley Review into the scandal had identified the need for a new independent administrator for Libor.
“Libor is of fundamental importance to the global financial markets and it is vital that market participants have full confidence in the integrity of the rate,” said IBA president Finbarr Hutcheson.
“With the support of market participants, regulators and stakeholders, and through enhanced checks and controls, IBA will work collaboratively to ensure full confidence in Libor,” he added.
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