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Euronext takes over running of Libor

The owner of the New York Stock Exchange is to take control of the controversial interbank lending rate at the heart of the recent banking scandal.

NYSE Euronext will take over management of Libor from the British Bankers' Association (BBA) early next year after a transition period as part of reforms of the benchmark rate.

The new Libor-setting group will be known as NYSE Euronext Rate Administration and will be based in the UK and regulated by the Financial Conduct Authority (FCA).

A review of Libor by FCA boss Martin Wheatley recommended the BBA should be stripped of its responsibility for setting Libor after widespread rate-rigging.

Mr Wheatley said: "This marks a significant step in implementing the recommendations in my review of Libor. The new administrator will take over a benchmark with better regulatory oversight and improved governance."

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