Thomson Reuters to bid to run new LIBOR
Wednesday 12 December 2012
Thomson Reuters, which has been responsible for the administration of LIBOR for many years, wants to run a toughened new system after being assured by UK regulators that it is not being investigated over attempts to rig global interest rates, the Financial Times reported on Wednesday.
LIBOR – London interbank offered rate – is the umbrella term for global benchmarks that underpin the terms of $350 trillion of contracts, from mortgages to the cost of corporate lending. They are set daily after the world’s leading banks submit their own estimates of borrowing rates.
The FT said Thomson Reuters has been assured by the Bank of England and UK regulator the Financial Services Authority that it is not under investigation. It is set to join Bloomberg among bidders to operate the new LIBOR. The FSA has proposed that the future administration of LIBOR should continue to be operated by a private organisation.
David Craig, president of Financial and Risk at Thomson Reuters, said the group believed it had a role to play. “One of the challenges is that you cannot change LIBOR overnight.” ■
- Financial Times