In mid-January, IntercontinentalExchange Group said that its ICE Benchmark Administration (IBA) unit would become the new administrator for London Interbank Offered Rate (Libor) as of Feb. 1 under the auspices of the U.K.’s Financial Conduct Authority, which oversees the benchmark’s administration.
According to a press release from ICE, IBA was selected via committee to be the Libor administrator in July 2013, and has been consulting with the financial community on how to make the transition without disrupting Libor’s calculation and dissemination. IBA said that there would be no immediate changes to the benchmark’s methodology.
In its role as Libor administrator, IBA has created a system of checks and balances, such as an independent board and an oversight committee that includes the board and a wide range of market participants. The press release also noted IBA’s new “surveillance methodology,” which is intended to prevent the kind of manipulation that created the recent scandal.