ISDA Puts Out to Tender Role of ISDAfix Benchmark Administrator

The International Swaps and Derivatives Association Inc. said it’s seeking offers from companies wanting to become the benchmark administrator for ISDAfix, a measure used in the $426 trillion swaps market.

The winning bidder would be responsible for calculating ISDAfix rates, collecting the data and checking the integrity of submissions, the ISDA said in a statement today.

Icap Plc (IAP) is losing its role setting the benchmark for interest-rate swaps as regulators look into whether banks manipulated the measure. Bloomberg News reported last year that U.S. regulators have found evidence that the rate, which is set daily based on data reported by banks, was manipulated at the expense institutional investors.

ISDA, a trade group for the derivatives industry, said in September it planned to set all of the rates based on actual trades, instead of trusting the information banks submitted.

An official at Icap in London didn’t immediately return a call seeking comment.

To contact the reporter on this story: Gavin Finch in London at gfinch@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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