LONDON, July 9 (UPI) -- The international Libor benchmark lending rate will be managed by New York exchange operator NYSE Euronext, an independent committee has decided.
The London inter-bank offered rate is an average interest rate that banks charge each other for loans. It has been managed by the British Banker's Association, a trade group based in Britain.
But an international scandal erupted in 2012 over the Libor rate, which is a benchmark used for setting rates on trillions of dollars of personal and commercial loans.
To date, three major banks have paid more than $2.5 billion in fines to settle charges of rigging their Libor reports to squeeze more profits out of the derivatives market, The Financial Times reported Tuesday.
In response to the scandal, which still involves several ongoing investigations, the British government set up an independent committee chaired by economist Sarah Hogg to select a new group to calculate and manage the Libor rate.
Among NYSE Euronext's responsibilities will be to restore credibility to the Libor rate, the Times said.
"This change will play a vital role in restoring the international credibility of Libor," Hogg said.
NYSE Euronext beat out the London Stock Exchange and Markit Economics, a research firm, that were under consideration.
NYSE Euronext is expected to take over managing the Libor in early 2014, the Times said.
