Tuesday, July 09, 2013 11:58 AM / WSJ
Libor, the controversial benchmark that underpins interest rates on trillions of dollars in financial contracts, is being sold to NYSE Euronext, the company that runs the New York Stock Exchange, according to people familiar with the matter.
An announcement of the deal, whose financial terms weren’t immediately clear, is expected Tuesday, these people said.
Since its inception in the 1980s, Libor has been run by the British Bankers’ Association, a London-based trade group whose members are some of the world’s biggest banks.
But the rate has been engulfed in scandal in recent years, due to attempts by a number of banks to manipulate the rate for their own financial gain. Three banks have settled rate-manipulation charges, agreeing to pay a total of roughly $2.5 billion in penalties to U.S. and British regulators.