July 10 (Bloomberg) -- Standard Chartered Plc’s chief executive officer for Europe, Richard Holmes, backed the appointment of NYSE Euronext as administrators for the London interbank offered rate.
“NYSE Euronext already administers the futures exchange,” Holmes said in an interview with Mark Barton and Anna Edwards on Bloomberg Television’s “Countdown.” “The structure being put in place is very sound.”
The New York Stock Exchange operator said yesterday it will replace the British Bankers’ Association in administering Libor, vowing to restore confidence to the benchmark amid a rigging scandal. More than $300 trillion in securities are benchmarked to the rate, which has been regulated by the U.K. Financial Conduct Authority since April as part of an overhaul.
NYSE Euronext may be able to strengthen the validity of Libor by adding trades to the way it’s calculated, which is currently based on quotes, said Holmes.
“One of the things being looked at is the basis and whether you can use actual transactions and quotes in combination,” he said.
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