07/09/2013 08:20 EDT | Updated 09/08/2013 05:12 EDT

NYSE operator takes over administration of LIBOR key bank lending rate

LONDON - The New York Stock Exchange's operator will take over administration of the London interbank offered rate, or LIBOR, which has been the subject of a global market manipulation scandal.

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.