The British Bankers' Association, a trade group, sets the LIBOR daily after about a dozen international banks submit borrowing estimates. LIBOR is the rate banks use to borrow from each other. The rate indirectly affects the cost of mortgages and student and consumer loans.
But the need for a reform came after a scandal emerged in which banks were found to be submitting false data to gain market advantages.
The British government had named an independent committee to recommend how to reform LIBOR. The committee said Tuesday that NYSE should take over operation, beating out British competition.