Home/Forex News Round Up/GBP

UK FCA Appoints Libor Administrator

Share Print 0

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.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top