Page 34 - Bank Case Studies

The 25% highest and lowest submissions are excluded, this is done to

exclude outliers, and the average is taken from the remaining rates,
rounded on five decimals. The Libor rates were, daily before noon,

published by Thomson Reuters, on behalf of the BBA but as of
January 2014 the Intercontinental Exchange (ICE) Benchmark

Administration became responsible for the calculation and
responsibility of the Libor rate.

The individual submissions by the banks’ to the British Bankers

Association (BBA) were also published, giving an idea of the banks
relative creditworthiness based on their estimates of the interbank
money market, where banks borrowed cash from each other to fund

their day-to-day operations. This prevented them from deviating too
far from the truth because their fellow market participants knew

what rates they were really being charged. However, the BBA had no
punitive powers, so there was little to discourage firms from
cheating.