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News Summary: NYSE operator takes over LIBOR

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The Associated Press | July 9, 2013 03:15 PM EST | AP


NEW ADMINISTRATOR: NYSE Euronext, the company behind the New York Stock Exchange, will take over running the scandal-hit London interbank offered rate, or LIBOR, by early next year, a UK committee has ruled.

NOT HONORABLE: The British Bankers' Association had supervised the rate-setting for decades via an honor system, but revelations of LIBOR manipulation last summer both shocked the financial community and forced a reform in how it was administered.

WHAT IT IS: LIBOR is an average rate that measures how much banks expect to pay each other for loans. It underpins trillions of dollars of transactions worldwide and is also used in calculating borrowing costs of hundreds of trillions of dollars in loans and investments such as bonds, auto loans and derivatives.