FCA helps with new rate probe

BRITAIN’S Financial Conduct Authority is co-operating with US regulators on a probe into how a key benchmark for interest rate swaps is set, it emerged last night.

Following the Libor-rigging scandal the US has decided to investigate whether any collusion has taken place in the setting of the ISDAfix rate. Both rates rely on human submissions and not actual trade data.

The US authorities have already requested information from broker ICAP, who collate the data that produces the ISDAfix rate.