NYSE Euronext (NYSE:NYX) has won the contract to handle Libor, the London Interbank Offered Rate, reports DealBook’s Nathaniel Popper. Several banks were required to pay fines after the Libor rigging scandal was uncovered, so a new company taking over the rate’s regulation might provide a fresh start for it.

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NYSE’s Libor Contract

The parent company of the New York Stock Exchange said it will begin overseeing Libor early in 2014. NYSE Liffe, the company’s London subsidiary, will apparently be handling the rate. The subsidiary’s CEO said the company will look to bring Libor back to credibility and integrity in terms of being a key benchmark.

How Libor Works And The Selection Process

The British Bankers’ Association had been handling Libor, although the British government recommended late last year that an independent party should handle the rate setting. The review from the government committee also recommended that Libor continue to be set according to daily consultations with the biggest banks in the world. However, the future Libor administrator will be required to also use information from actual short term loans rather than the rates banks estimated that they would charge for those loans.

A number of other companies were competing for the contract. NYSE Euronext (NYSE:NYX) beat out companies like the London Stock Exchange, according to DealBook’s sources. An independent committee started the process of choosing the company which would oversee Libor in February. The Financial Conduct Authority still must approve the selection of NYSE Euronext as the winner of the contract.

Problems With The Selection

Just weeks ago, regulators in Europe approved the merger between NYSE Euronext (NYSE:NYX) and IntercontinentalExchange Inc (NYSE:ICE) as NYSE Euronext looked to diversify its business. Adding Libor administration to the company’s businesses would diversify them even further, but not everyone is happy with the choice.

Bart Chilton, who’s on the U.S. Commodity Futures Trading Commission, told DealBook, said that having a neutral party administrating Libor is important, but he doesn’t think that an exchange is the right choice.