NYSE won the right to administer the lending rate, beating off bids from others including the London Stock Exchange. A Treasury committee lead by Baroness Hogg, chairman of the Financial Reporting Council, who took control of the tender back in April (incidentally, her daughter Charlotte has just been appointed as Mark Carney's right-hand woman at the Bank of England. Talented family).
The move is unlikely to be a popular one in the City but hardly comes as a surprise given the transgressions of last year when Barclays, RBS and UBS were fined for fixing submissions to the rate.
But the question remains whether this system will be substantially less susceptible to minipulation than the old one.
'We had a ‘fox guarding the henhouse’ issue here, and we should learn from that,' said Bart Chilton, a member of the US Commodity Futures Trading Commission.
'I firmly believe that having a truly neutral third-party administrator would be the best alternative, and I’m not sure that an exchange is the proper choice.'
He makes a good point. Will putting control into the hands of yet another financial body with something to gain from the odd rig mean we’re doomed to repeat scandal's past?
Perhaps. What MT also really wants to know is, are we now calling it NYIBOR? Pronouncing that is no mean feat...