LONDON--(BUSINESS WIRE)--IntercontinentalExchange Group (NYSE:ICE), the leading global network of exchanges and clearing houses, today announced that ICE Benchmark Administration (IBA) will officially take over as the new administrator of the London Interbank Offered Rate (LIBOR) from February 1, 2014. Today the Financial Conduct Authority (FCA) confirmed formal authorisation to IBA to administer LIBOR effective February 1, 2014.
In September 2012, the Wheatley Review identified the need for a new independent administrator for LIBOR. Following a rigorous selection process conducted by the Hogg Tendering Advisory Committee, IBA was recommended as the new administrator in July 2013. Since then, IBA has been working closely with the British Bankers’ Association (BBA), industry organisations and stakeholders to ensure no disruption to the calculation and publication of the rate to the marketplace. To safeguard a smooth transition, there will be no change to the calculation of LIBOR at this time.
Operating as an autonomous entity within ICE, IBA has built a robust oversight and governance framework that includes an independent board with a majority of Independent Non-Executive Directors. The Oversight Committee, which will administer the LIBOR code of conduct, shall be composed of benchmark users, independent experts, benchmark submitters, the IBA board and other stakeholders. The following two Directors have been appointed to the Board of IBA:
- André Villeneuve will serve as Chairman of ICE Benchmark Administration. Previously, he was Chairman of the City of London’s International Regulatory Strategy Group and he has extensive expertise in financial markets for complex securities and financial information services;
- Joanna Perkins will serve as Chair Person for the Oversight Committee of ICE Benchmark Administration, in addition to serving as the Chief Executive of the Financial Markets Law Committee (FMLC).
IBA’s new surveillance methodology has been designed to adjust to changing market conditions and it will employ sophisticated analytical tools to operate the benchmark price setting process with transparency. These measures will help IBA identify errors or potential misconduct, such as collusion.
“LIBOR is of fundamental importance to the global financial markets and it is vital that market participants have full confidence in the integrity of the rate,” said Finbarr Hutcheson, President, ICE Benchmark Administration. “With the support of market participants, regulators and stakeholders, and through enhanced checks and controls, IBA will work collaboratively to ensure full confidence in LIBOR. I am pleased to welcome André Villeneuve and Joanna Perkins to IBA.”
Notes to Editor
André Villeneuve served as Chairman of the City of London’s International Regulatory Strategy Group from 2006 to 2012. He was Non-Executive Chairman of LIFFE (now part of IntercontinentalExchange group), from 2003 to 2009. He was an Executive Director of Reuters from 1989 to 2000. He was Chairman of Instinet Corp., an electronic brokerage subsidiary of Reuters, from 1990 to 1999, and Executive Chairman from 1999 to 2002. André was Chairman of Promethee, the French think tank, from 1998 to 2002, Non-Executive director of Aviva PLC from 1996 to 2006, Non-Executive director of International Financial Services London (IFSL) from 2007 – 2010, and Non-Executive director of TheCityUK from 2010 - 2012. He was also a Non-Executive director of IFRI (Institut Francais des Relations Internationales) from 2003 to 2009 and EuroArbitrage from 2003 to 2009. He is a Non-Executive director of the Lloyds Franchise Board and United Technologies Corporation. He serves on the Advisory Council of TheCityUK and on several City of London steering groups.
Joanna Perkins is the Chief Executive officer of the FMLC and a barrister at South Square, Gray's Inn where she is regularly instructed to give technical advisory opinions in the context of structured products. Before that, Joanna worked for the Law Commission managing a project on unfair contract terms. She has held lectureships at Durham University, Paris II (Panthéon-Assas), Université de Paris and Birkbeck College, University of London. She is also an occasional guest lecturer at the London School of Economics and Political Science and University College, Dublin. As a UK delegate to working groups of the UN and European Council, she has advised on various aspects of financial law. She has also participated in a number of expert panels and consultative groups established by HM Government in financial law and related aspects of insolvency law. After completing a Doctorate in Law at Oxford University, where she worked as a college lecturer, Joanna was called to the Bar in July 2001. In 2012, she was voted one of the 100 most influential women in European finance by Financial News.
About IntercontinentalExchange Group
IntercontinentalExchange (NYSE: ICE) is the leading network of regulated exchanges and clearing houses for financial and commodity markets. ICE delivers transparent, reliable and accessible data, technology and risk management services to markets around the world through its portfolio of exchanges, including the New York Stock Exchange, ICE Futures, Liffe and Euronext.
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